Coupang's Strong Quarter and Upside Potential: An Analyst's View
Coupang's Quarter Performance
Barclays analyst Jiong Shao sees a strong case for Coupang's growth, raising the price target to $32. The company's underlying growth exceeds headline numbers, showcasing a 33% revenue growth driven by increased active customers and unit growth from various segments.
Profitability Insights
Even with an EPS dip due to the Farfetch integration, Coupang generated $2.4 billion in cash and $1.5 billion in free cash flow. Management anticipates breakeven EBITDA for Farfetch by year-end, underscoring long-term profitability.
Investment Opportunity
Despite the recent market reaction, Coupang's growth trajectory and financial health make it an attractive investment at $22, potentially offering significant returns over the next year.
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