New Street: CPNG - Initiating with BUY Rating at $25; Clear Path to EBITDA Targets By 2027
What’s New: We are initiating Coupang Inc (CPNG US) with a BUY rating at a PT of USD 25, which implies 1.8x FY23 EV/Rev. Our positive view is based on a clear path to LT Adjusted EBITDA target driven by execution of multiple drivers including 1) Scale in 1P segment; 2) GMV and revenue mix shift towards higher margin 3P; 3) Expansion of Rocket Wow membership base; and 4) Narrowing loss margin in developing offerings. Coupang could leverage its fulfilment and logistics infrastructure (similar to JD.com in China) and Rocket Wow membership base to expand its adjusted EBITDA to 7.0% in the next 5 years.Analysts:
Jin Yoon
Provided by our team of experienced analysts, our work is idea driven, based on independence of thought, sector expertise, and firmly focussed on fundamentals and valuation.
New Street Research is an independent, partner-owned, research firm specialising in equity and debt research. Our equity research embraces the following sectors:
- Pan European Telecom Services and Cable
- US Telecoms, Cable, Satellite and Towers
- Global Emerging Market Telecoms
- Japan Telecoms
- Asian Internet
- Pan European Healthcare
- Global healthcare thematic research
We provide debt research on:
- Pan European Telecom Services and Cable
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