Wedbush Morning Call - Nov 01 2024 7:08AM

Time For Smart Nodes To Regain Control; Outperform, $250 PT

CPNG 3Q24 Results: Margins to Improve YoY in FY24

What’s new: Coupang’s reported 3Q24 results that were above consensus and our expectations. While margins could fluctuate QoQ partly due to seasonality and timing of expenses, adjusted EBITDA margin could further improve on a YoY basis in FY24 partly due to scale and better operating efficiency. We up our PT from USD28 to USD30 as CPNG could continue to grow multiples of the market. Our updated PT of USD30 implies 1.46x FY25E EV/Revs. We maintain our BUY rating. Analysts: Jin Yoon

LUMN: quick thoughts following the 3Q24 call

We cover two important things in this brief note: first, the valuation of the new PCF contracts; second, the implications of recent transactions for the value of Quantum Fiber and the Mass Markets business. We also touch on trends in Quantum Fiber.

FYBR 3Q24 Quick Take: Subscribers beat; EBITDA in line; all eyes on the vote

Fiber deployment and fiber net adds were both exceptional. EBITDA was in-line, despite the strong growth (higher SAC from higher growth will have been a drag on EBITDA). If Frontier remains independent after November 13th, these results will provide strong support for management’s strategy and execution prowess.