Bank of America Securities analyst Ahyung Cho has reiterated their bullish stance on CPNG stock, giving a Buy rating on August 20.
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Ahyung Cho has given his Buy rating due to a combination of factors that indicate Coupang’s strong performance and potential for growth. The July retail industry survey highlighted that Coupang’s product commerce outperformed expectations, with a 14% year-over-year increase, surpassing the 11% growth in the second quarter. This growth was particularly notable in the grocery category, which remained robust, and in discretionary categories such as home appliances and apparel, which showed improvement.
Additionally, despite the introduction of consumption vouchers that could not be used online, Coupang’s e-commerce segment continued to demonstrate resilience, indicating a structural shift towards e-grocery. Furthermore, the company’s expansion strategy in Taiwan, coupled with its operational efficiency improvements and ad revenue growth in Korea, supports a positive outlook. These factors, along with industry consolidation, underpin Cho’s confidence in Coupang’s ability to replicate its success in new markets, justifying the Buy rating with a price objective of $36.
In another report released on August 20, Morgan Stanley also maintained a Buy rating on the stock with a $35.00 price target.