Analyst Ahyung Cho of Bank of America Securities maintained a Buy rating on Coupang, retaining the price target of $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 the e-commerce sector and its recent strategic initiatives. Despite a softer retail sales environment in August, largely attributed to the shifting Chuseok holiday calendar, Coupang’s online sales have shown resilience with a notable year-over-year growth. The e-grocery segment, in particular, has demonstrated impressive growth, indicating a robust demand in this category.
Coupang’s introduction of quick commerce services and potential partnerships with major retail players like GS Retail and Emart Everyday further bolster its growth prospects. These initiatives, coupled with the asset-light nature of its quick commerce operations, are expected to create synergies with its existing WOW membership program. Additionally, the improving consumer sentiment index suggests a favorable environment for Coupang’s continued expansion. These factors collectively support the Buy rating with a price objective of $36.
In another report released on September 18, Arete Research also initiated coverage with a Buy rating on the stock with a $40.00 price target.