Coupang (CPNG – Research Report), the Consumer Cyclical sector company, was revisited by a Wall Street analyst today. Analyst Ahyung Cho from Bank of America Securities reiterated a Buy rating on the stock and has a $30.00 price target.
Ahyung Cho’s rating is based on several key factors that highlight Coupang’s strong market position and growth potential. The company’s first-quarter revenue aligned with expectations, showing a 21% increase in net revenue on a constant currency basis, which demonstrates its robust growth trajectory. Despite a slight shortfall in adjusted EBITDA due to losses in developing offerings, the core product commerce segment exceeded expectations with a 17% year-over-year growth in gross merchandise value and better-than-expected adjusted EBITDA.
Additionally, Coupang’s announcement of a $1 billion stock repurchase plan underscores its commitment to enhancing shareholder value, especially in a volatile economic climate. The favorable operational environment for the second quarter, characterized by healthy top-line growth and stable user engagement, further supports the Buy rating. The company’s strategic focus on profitability improvement, market share gains, and its unmatched capabilities in the grocery sector are pivotal in maintaining a positive outlook. These elements collectively justify the Buy rating and a price objective of $30 USD.
According to TipRanks, Cho is a 3-star analyst with an average return of 7.9% and a 75.00% success rate.
In another report released today, Morgan Stanley also maintained a Buy rating on the stock with a $27.00 price target.