Coupang downgraded to Neutral from Buy at UBS

UBS downgraded Coupang (CPNG) to Neutral from Buy with a price target of $18.50, down from $26. Coupang’s near-term share price could be capped due to uncertainties around its strategy post-Farfetch (FTCH) acquisition amid concerns on product commerce margin outlook, the analyst tells investors in a research note. While the deal could present positive opportunities for Coupang over the long-term, it is uncertain what assets will remain at Farfetch following the asset disposal process to recoup the outstanding $1.6B loans at Farfetch as well as what strategic path Coupang will take to turn Farfetch profitable, UBS argues.