Bernstein Initiates Coupang (CPNG) Coverage with Underperform Rating, $17 PT

Core Viewpoint - Coupang Inc. is currently viewed as a less favorable investment option, with recent downgrades and price target reductions from major firms indicating concerns over growth potential and regulatory risks [1][3]. Group 1: Analyst Ratings and Price Targets - Bernstein initiated coverage of Coupang with an Underperform rating and a price target of $17, reflecting a cautious outlook on the company's performance in the South Korean internet sector [1]. - Nomura downgraded Coupang from Buy to Neutral, lowering its price target from $30 to $22, citing increased regulatory risks following a data breach [3]. Group 2: Market and Sector Insights - The South Korean digital advertising market is expected to continue shifting towards online channels, with a preference for companies demonstrating high growth potential linked to online penetration and AI leadership [2]. - Despite the overall growth in digital advertising, the e-commerce and food delivery sectors are perceived to have limited growth opportunities at this time [2]. Group 3: Company Overview - Coupang Inc. operates a retail business through mobile applications and internet websites, both in South Korea and internationally, indicating its broad market presence [4].