Breaking News
Get Actionable Insights with InvestingPro+: Start 7 Day FREE Trial Register here
Investing Pro 0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Coupang Market Share to Reach 26% in 2023, Says Analyst

Stock Markets Jul 01, 2022 15:52
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters.

By Sam Boughedda

South Korean e-commerce company Coupang (NYSE:CPNG) was upgraded to Outperform from Neutral at Credit Suisse (SIX:CSGN) by analyst Soyun Shin on Friday.

Coupang shares jumped 15% Friday, following the upgrade.

Shin lowered the firm's price target on the stock from $28 to $19 per share. The analyst explained that Coupang shares have underperformed the S&P index by 58% in the past year over market concern about the sustainability of online traffic growth and uncertainties of the macro environment.

However, they "believe rising feasibility based on bottom-line turnaround through the lock-in effect of Rocket WOW subscription (the largest paid membership programme) and monetization initiatives are underestimated by the market."

Explaining Credit Suisse's investment thesis, Shin said the company "should start to harvest its traffic by leveraging the largest membership subscribers, accumulated user data which can be utilized to generate ad sales and competitiveness in providing fulfillment service for 3P merchants."

"While online shopping transaction growth is normalized amid the re-opening, which led us to cut our GMV estimates by 6.5-10.4% for 2022-23E, market share gain momentum should be sustainable mainly due to the cohort expansion of core subscribers. We estimate Coupang’s market share to reach 26% in 2023E, from 16% in 2020 (goods only)," said Shin.

On Thursday, Morgan Stanley analysts said Coupang's "dominant position, with its fulfillment and logistics infrastructure, makes it a unique asset."

Coupang Market Share to Reach 26% in 2023, Says Analyst
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email