Coupang rallies after UBS says sales, market share, and margins will continue to go higher

Coupang (NYSE:CPNG) rallied in early action on Thursday after UBS upgraded the South Korean e-commerce stock to a Buy rating after having it set at Neutral.

Analyst Jennifer Han and her team view Coupang (CPNG) as a leader in the $124 billion Korea e-commerce market, with a 29% market share. Notably, the firm expects Coupang (CPNG) to grow its market share by 43% by 2026. “Our analysis suggests that the market may be underestimating Coupang’s capabilities, overlooking its expanding portfolio and strong logistics network,” highlighted Han.

Looking ahead, UBS forecasted a 21% gross merchandise value CAGR for Coupang (CPNG) between 2023 and the end of 2026 and set its revenue expectations ahead of the consensus estimates. Coupang (CPNG) is expected to continue to improve its adjusted EBITDA margin of above 10% with ongoing improvements in operational efficiency, scale, and automation. UBS assigned a price target of $26 to CPNG.

Shares of Coupang (CPNG) broke 2.84% higher in early trading to $23.16 vs. the 52-week trading range of $13.51 to $23.77. Coupang (CPNG) trades more than 25% above its 100-day and 200-day moving averages. Short interest on CPNG stands at 2.41% of the total float.