Coupang: The Risk/Reward Has Now Become Attractive

Jul. 13, 2022 12:57 PM ETCoupang, Inc. (CPNG) StockCPNG5 Comments
Cavenagh Research
9.44K Followers

Summary

  • Coupang is the leading e-commerce company in South Korea.
  • The company operates a consumer platform and a countrywide logistic and delivery network that enables the company to offer industry-leading standards in delivery time and frequency.
  • Coupang has seen strong growth in the past and now claims a market share in South Korea of approximately 20% in e-commerce.
  • I argue that the company is poised to eventually claim a monopolistic position if government regulation does not interfere with Coupang’s expansion.
  • I initiate coverage on Coupang with a Buy recommendation and a $19.37/share target price.

Coupang headquarters in Silicon Valley

Sundry Photography/iStock Editorial via Getty Images

Coupang (NYSE:CPNG) stock is down more than 55% YTD. While I feel the pain of shareholders who bought the stock early, new investors might appreciate the attractive valuation as a buying opportunity and accumulate a position. Coupang

This article was written by

9.44K Followers
Experience as an investment analyst for a major BB-Bank, as well as private equity consultant for MBB. Currently working towards the CFA charter, having completed I&II. Passion for risk-assets (Growth, Contrarian, Emerging Market) ex-colleague and close friend of Investor Express

Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

not financial advise

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