Coupang's $24 Target: CLSA Bets on Korea's E-Commerce Edge

CLSA initiated coverage of Coupang (NYSE:CPNG) with an Outperform rating and a $24 price target on June 15. The research firm pointed to the company's irreplaceable position in South Korea's e-commerce market, built on a first-party-centric platform backed by nationwide logistics.

That logistics edge sets Coupang apart, CLSA argued. Korea's e-commerce market is set to grow at a compound annual rate of 6% between 2025 and 2029, normalizing after a cyclical trough in 2024 and a modest rebound last year. Coupang, the firm said, should be one of the biggest beneficiaries.

CLSA expects Coupang's share of Korea's gross merchandise value to climb from 32% in 2025 to 37% by 2029. Most of that gain would come from the first-party logistics advantage. The firm also projects 12% compound annual revenue growth and a 30% compound annual increase in adjusted EBITDA.

The screen that identified high-growth large-cap stocks puts Coupang's expected five-year earnings growth at 90.85%. AlphaScala's Alpha Score rates CPNG at 28 out of 100, giving it a Weak label within the Consumer Cyclical sector.

CLSA's $24 target and growth forecasts rest on the assumption that Coupang's logistics superiority keeps widening the gap with competitors. The firm sees the company continuing to extend its lead in delivery speed and cost efficiency, which in turn supports higher market share and margin expansion.