Morgan Stanley analyst Seyon Park has maintained their bullish stance on CPNG stock, giving a Buy rating today.
Seyon Park has given his Buy rating due to a combination of factors that highlight Coupang’s strong financial performance and promising growth prospects. The company’s fourth-quarter results for 2024 showed a significant recovery in margins for its Product Commerce segment, which is seen as crucial for long-term margin growth. This improvement was primarily driven by better gross margins, and management has indicated that growth should stabilize in the near to medium term.
Moreover, Coupang’s guidance for a 20% revenue growth aligns with expectations for mid-to-high teens growth in gross merchandise value. The adjusted EBITDA loss for Developing Offerings was also lower than anticipated, which contributed to a positive outlook. Additionally, the company’s operations in Taiwan have scaled substantially, with a 23% quarter-over-quarter revenue increase, further supporting the Buy rating.
In another report released today, Deutsche Bank also upgraded the stock to a Buy with a $28.50 price target.
Based on the recent corporate insider activity of 46 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of CPNG in relation to earlier this year.