Coupang's EBITDA Trajectory Triggers Price Target Boost By This Analyst

Coupang's EBITDA Trajectory Triggers Price Target Boost By This Analyst
  • Mizuho analyst James Lee maintained Coupang Inc CPNG with a Neutral and raised the price target from $18 to $22.
  • Coupang clocked 12.5% revenue growth in the second quarter to $5.04 billion, missing the consensus of $5.06 billion.
  • EPS was $(0.04), beating the consensus of $(0.11).
  • He highlighted that CPNG reported better than expected EBITDA due to its efforts to increase efficiency in core products while moderating investments in developing offerings. 
  • As a result, FY22 EBITDA guidance increased meaningfully from less than -$400 million to positive for the entire year. 
  • He raised the FY25 EBITDA estimate by 10% to $2.5 billion with a better than anticipated margin outlook. 
  • While he was encouraged by the EBITDA trajectory through cost management, his Neutral rating reflected CPNG’s premium valuation compared to global peers and ongoing competitive concerns. 
  • Price Action: CPNG shares traded lower by 4.66% at $18.84 on the last check Thursday.
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