Coupang (CPNG) Stock: Why It Increased Over 17% Today

By Amit Chowdhry ● Jul 1, 2022
  • The stock price of Coupang Inc (NYSE: CPNG) increased by over 17% today. This is why.

The stock price of Coupang Inc (NYSE: CPNG) increased by over 17% today. Investors responded positively to a bullish research report.

Coupang was upgraded to an “Outperform” rating from a “Neutral” rating by Credit Suisse analyst Soyun Shin. And Shin assigned the company a $19 price target, which represents more than a 49% upside to the company shares.

Shin noted that Coupang’s shares have underperformed the S&P index by 58% in the past year due to market concerns about the sustainability of online traffic growth and the macro environment uncertainties.

“(We believe) rising feasibility based on bottom-line turnaround through the lock-in effect of Rocket WOW subscription (the largest paid membership program) and monetization initiatives are underestimated by the market,” wrote Shin in a research note. “While online shopping transaction growth is normalized amid the re-opening, which led us to cut our GMV estimates by 6.5-10.4% for 2022-23E, market share gain momentum should be sustainable mainly due to the cohort expansion of core subscribers. We estimate Coupang’s market share to reach 26% in 2023E, from 16% in 2020 (goods only).” 

Plus Shin noted that the company should start to harvest the traffic by leveraging the largest membership subscribers, and accumulated user data which can be utilized to generate ad sales and competitiveness in providing fulfillment services for third-party merchants

Disclaimer: This content is intended for informational purposes. Before making any investment, you should do your own analysis.