Coupang’s Strategic Growth and Resilience in E-commerce Justifies Buy Rating
Ahyung Cho has assigned a Buy rating to Coupang, citing its strong e-commerce performance and strategic initiatives despite a challenging retail environment. The company has shown resilience in online sales, particularly in the e-grocery segment. New quick commerce services and potential partnerships with GS Retail and Emart Everyday enhance growth prospects. The asset-light nature of these operations is expected to synergize with the WOW membership program. Improving consumer sentiment supports continued expansion, with a price objective of $36. Arete Research also initiated coverage with a Buy rating and a $40 target.
Ahyung Cho has given his Buy rating due to a combination of factors including Coupang’s strong performance in the e-commerce sector and its recent strategic initiatives. Despite a softer retail sales environment in August, largely attributed to the shifting Chuseok holiday calendar, Coupang’s online sales have shown resilience with a notable year-over-year growth. The e-grocery segment, in particular, has demonstrated impressive growth, indicating a robust demand in this category.
Coupang’s introduction of quick commerce services and potential partnerships with major retail players like GS Retail and Emart Everyday further bolster its growth prospects. These initiatives, coupled with the asset-light nature of its quick commerce operations, are expected to create synergies with its existing WOW membership program. Additionally, the improving consumer sentiment index suggests a favorable environment for Coupang’s continued expansion. These factors collectively support the Buy rating with a price objective of $36.
In another report released on September 18, Arete Research also initiated coverage with a Buy rating on the stock with a $40.00 price target.
