Analyst Ahyung Cho from Bank of America Securities reiterated a Buy rating on Coupang and increased the price target to $38.00 from $36.00.
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Ahyung Cho has given his Buy rating due to a combination of factors including Coupang’s strong performance in product commerce, which exceeded expectations. The company’s total revenue and adjusted EBITDA were in line with Bank of America’s estimates, with product commerce showing significant growth at an 18% rate on a constant currency basis. The adjusted EBITDA of $705 million and a margin of 8.8% surpassed both the firm’s and the Street’s expectations, driven by increased direct sourcing, supply chain optimization, and operational efficiency improvements.
Despite some challenges, such as a larger-than-expected loss in their delivery operations, Coupang’s management remains optimistic about future performance. The company has made aggressive investments in logistics, supported by favorable consumer behavior, and anticipates a reduction in quarterly delivery losses. Additionally, the firm has raised its price objective to $38, reflecting confidence in Coupang’s potential for ongoing margin improvement and expansion into underpenetrated categories. This strategic outlook underpins the reiterated Buy rating.
Based on the recent corporate insider activity of 45 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of CPNG in relation to earlier this year.