Coupang, Inc. (CPNG) Shares in Focus Amid Mixed Signals

Coupang Inc (NYSE:CPNG) is one of the stocks with huge growth potential, according to the media. On January 15, BofA Securities reiterated a Buy rating on Coupang Inc (NYSE:CPNG) but cut the price target to $32 from $38. Despite the cut, the new price target represents significant upside potential of more than 50%.

BofA Securities cut its price target due to concerns that the company is facing regulatory challenges following a personal data leak. In addition, the company remains under scrutiny over fair trade, labor, and tax matters, even though the issues are not new to the company, according to the research firm.

The company has had to contend with a challenging business environment owing to persistent regulatory oversight in the Korean retail industry. Two major US investors have already requested that the US government investigate the South Korean government for allegedly imposing trade remedies that amount to discriminatory treatment of the e-commerce giant.

Consequently, BofA Securities has warned that the investigations could create uncertainties in the short term and negatively impact investor sentiment. Nevertheless, it remains optimistic about its long-term prospects given the Buy rating.

Coupang, Inc. (NYSE:CPNG) is a major South Korean e-commerce company specializing in rapid, end-to-end retail and logistics, with a key differentiator being its “Rocket Delivery” service. Beyond e-commerce, it offers restaurant delivery (Coupang Eats), video streaming (Coupang Play), fintech services, and, most recently, luxury goods via Farfetch.

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Disclosure: None. This article is originally published at Insider Monkey.