Key Points
Investors are welcoming the company's determined push into the U.S. e-commerce space.
It had striking success in its original native market of South Korea.
E-commerce company Coupang (NYSE: CPNG) began life in Asia as something of an Amazon-like retailer and tech-adjacent enterprise.
It has since planted its flag in the U.S. and is clearly determined to be a major, Amazon-ish player in our market. Investors are clearly starting to notice this and place bets on the company's success. After all, its stock rose a very heartening 12%-plus over the course of September.
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Positive notices
Coupang isn't only drawing attention from the investing public; analysts are becoming bullish on the company too.
Image source: Getty Images.
In the middle of the month, Arete's Shawn Yang initiated coverage of the stock with a confident buy recommendation at a price target of $40 per share.
According to reports, Yang pointed out in a research note that Coupang was highly successful in its original home market of South Korea. In his view, management is capable of replicating this in the far larger and more competitive U.S. Meanwhile, the company has prioritized growth in the broader Asian market, and looks poised to do well leveraging the elements that made it powerful in Korea.
Coupang sure hasn't been shy about raising its profile in the U.S. During the month, it announced an international partnership with Lemme, a vitamin and supplement purveyor cofounded by Kourtney Kardashian Barker. The deal will see it introduce Lemme to the Korean market, in the brand's first expansion to the Asian country.
Also, at the start of September, Coupang announced a multiyear advertising partnership with the National Hockey League's (NHL) Washington Capitals. This will see the e-commerce company's name and logo placed on Capitals home and third jerseys, starting with the current season.
Of course, the Capitals and Kardashian on their own won't make Coupang an instantly familiar name in American households. The deals show determination to make a mark here, however, and as the company grows, we can expect more such tie-ups with increasingly higher prominence.
Major ambitions
Similarly, Coupang won't be a serious threat to Amazon in the coming months, or even years. However, with the juicy U.S. market in front of it, double-digit growth seems to be in the cards for the company.
The clutch of analysts tracking Coupang stock are collectively modeling revenue growth just shy of 15% for this year over 2024. That rate should be more or less maintained the following year, with a further 16% improvement. Despite the considerable spend facing the e-tailer with its U.S. push, it's expected to land in the black on the bottom line, both this year and next.
Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Amazon. The Motley Fool recommends Coupang. The Motley Fool has a disclosure policy.