UPDATE: JPMorgan Upgrades Coupang Inc (CPNG) to Overweight, 'Oversold'
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JPMorgan analyst Stanley Yang upgraded Coupang Inc (NYSE: CPNG) from Neutral to Overweight with a price target of $17.00 (from $25.00).
The analyst comments "With pandemic driven strong ecommerce market growth/investment cycle behind, CPNG is likely to enter into margin turnaround cycle over the next few years, driven by improving logistics cost structure, rationalizing competition and higher commissions in the Eats business, high-margin revenue mix shift (ad/membership), and operating leverage driven by structural market share gains. Potential take-up of fulfillment service for 3P merchants remains the major longerterm margin driver. Investor concerns remain on faster deceleration of domestic ecommerce growth, potential (albeit temporary) contraction in market growth with re-opening, global ecommerce peers’ valuation de-rating, and ongoing stock overhang issue (Softbank). Nevertheless, we believe risk/return has turned more favorable after the significant share price correction to the current level."
Shares of Coupang Inc closed at $11.99 yesterday.
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