Coupang Shares Surge on Better Than Feared Loss, Citi Upgrades to Buy

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CPNG reported a loss per share of 12c in the first quarter, compared to a loss per share of 68c in the year-ago period, and narrower than the estimated loss per share of 28c. Net revenue stood at $5.12 billion in the period, up 22% YoY and below the analyst consensus of $5.27 billion.

Coupang reported an operating loss of $205.7 million, down 23% YoY.

Citi analyst John Yu upgraded to Buy from Neutral on higher visibility.

“With higher visibility in near-term profit, we believe it is time to consider CPNG’s potential for achieving long-term guidance of 7~10% adj. EBITDA margin. We expect the low-end 7% to be achieved in five years,” Yu commented.

Mizuho analyst James Lee lowered the price target to $18.00 per share from $28.00 on “better than feared results.”

“Although we are encouraged by the disciplined investment, we are concerned about the inflationary impact on consumer spending and mix shift to the service industry. As a result, we reduced our FY25 revenue estimate by 12% to $32bn and EBITDA estimate by 21% to $2.2bn… We believe the stock lacks catalysts, given its premium valuation to global peers, and ongoing competitive concerns,” Lee wrote in a note.

By Senad Karaahmetovic

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