UPDATE: Mizuho Securities Starts Coupang Inc (CPNG) at Neutral
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Mizuho Securities analyst James Lee initiates coverage on Coupang Inc (NYSE: CPNG) with a Neutral rating and a price target of $50.00.
The analyst comments "Coupang capitalizes on the significant ecommerce opportunity in South Korea with an estimated $500bn in retail spend, and differentiates from peers by following Amazon’s path of significant investments in 1P inventory and end-to-end logistics. As a result, Coupang holds the leading ecommerce market share but still only penetrates 4% of retail TAM. We expect a five-year revenue CAGR of ~30%, and EBITDA growth of ~70% achieving meaningfully positive profitability in FY23. Our PT represents 1.4x FY25 EV/GMV and 25x EV/EBITDA, which is a 30% premium to peers we believe justified by higher estimated CAGR and category-leading position."
Shares of Coupang Inc closed at $47.31 yesterday.
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