UPDATE: Goldman Sachs Starts Coupang Inc (CPNG) at Buy
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Goldman Sachs analyst Eric Cha initiates coverage on Coupang Inc (NYSE: CPNG) with a Buy rating and a price target of $62.00.
The analyst comments "Coupang has created a substantial moat around its 1P-centric e-commerce model with a nationwide in-house logistics and delivery network in Korea, which we view as among the more unique e-commerce markets globally with its high penetration and fragmentation. Coupang was one of the fastest growing e-commerce players in 2020 (91% revenue growth), capturing c.50% of e-commerce TAM growth in Korea. We anticipate Coupang taking 28%/13% share of the US$269bn/US$565bn e-commerce/total retail TAM by 2023E, from c.14%/4% currently, translating into a 58% 3-yr GMV CAGR (2020-2023E), one of the highest among global peers (average 27%). As it continues to gain market share and realize subsequent profitability improvement from higher scale benefits (network density, efficiency, stronger bargaining power), Coupang should near EBITDA break-even by 2023E (from a loss of US$250mn in 2020). We initiate on this winner-take-most retail story at Buy with a US$62 TP (31% upside)."
Shares of Coupang Inc closed at $47.31 yesterday.
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