Shares Coupang LLC After beating the expectations of analysts regarding Q1’s loss per share, (NYSE): are now up 12.5% in premarket trades

CPNG reported a 12c loss per share in the. This compares to a loss of 68c per share in the previous year and is narrower than the loss per shares of 28c. The net revenue was $5.12B in the quarter, an increase of 22% YoY but below analysts’ consensus estimate at $5.27B.

Coupang suffered an operating loss from $205.7 million in 2018, down 23% YoY.

Citi analyst John Yu was upgraded to Neutral by the higher visibility

“With higher visibility in near-term profit, we believe it is time to consider CPNG’s potential for achieving long-term guidance of 7~10% adj. EBITDA margin. We expect the low-end 7% to be achieved in five years,” Yu commented.

Mizuho analyst James Lee lowered the price target to $18.00 per share from $28.00 on “better than feared results.”

“Although we are encouraged by the disciplined investment, we are concerned about the inflationary impact on consumer spending and mix shift to the service industry. As a result, we reduced our FY25 revenue estimate by 12% to $32bn and EBITDA estimate by 21% to $2.2bn… We believe the stock lacks catalysts, given its premium valuation to global peers, and ongoing competitive concerns,” Lee wrote in a note.

By Senad Karaahmetovic