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Coupang went public in March.
SeongJoon Cho/Bloomberg
Coupang
shares are getting blended opinions within the first batch of analyst notes concerning the South Korean e-commerce big.
Coupang (ticker: CPNG) went public final month at $35 a share and opened at $63.50. The inventory has come below strain since, retreating to the mid-40s. The firm is by far the most important participant in South Korean e-commerce and ranks because the nation’s third-largest employer.
Goldman Sachs analyst Eric Cha picked up protection with a Buy score and a $62 goal worth. Cha mentioned Coupang continues to take market share in a “winner takes most” retail story, noting the corporate grew 91% in 2020, capturing about half of the expansion final 12 months within the Korean e-commerce market. He wrote that the corporate can take 28% of the e-commerce market by 2023, double his present estimate, growing its share of complete South Korean retail gross sales in the identical interval to 13% from 4%. He mentioned the corporate can attain break-even on an Ebitda foundation (earnings earlier than curiosity, taxed, depreciation, and amortization) over the identical span.
Mizuho Securities analyst
James Lee
took a extra cautious stance, setting a Neutral score and $50 goal worth. Lee is bullish on the elemental story. He mentioned the corporate can develop gross sales 30% compounded over the subsequent 5 years to $41 billion by 2025. But he had some issues about valuation. “Although we believe fundamentals are clearly favorable, we prefer to wait for a more attractive entry point,” he wrote.
Deutsche Bank analyst Peter Milliken picked up protection with a Hold score and $46 goal. He is likewise impressed with the story however cautious on valuation. “Coupang has become the leader in the world’s fifth largest e-commerce market, with a 14% share of a fragmented market,” he wrote. “It has displaced prior leaders helped by superior delivery and service … We expect it to continue to translate a superior customer proposition into market share, so see the company as having a long runway of increasing revenue and margins from relatively low levels.”
Coupang shares on Monday have been down 3.6% to $45.63.
Write to Eric J. Savitz at eric.savitz@barrons.com
