Morgan Stanley raised its price target on Coupang (NYSE:CPNG) to $32 from $27, maintaining an Overweight rating and designating the Korean e-commerce giant as its new Top Pick.
The firm cited Coupang’s consistent execution, strong competitive positioning, and favorable macro tailwinds—including insulation from U.S. tariff risks and benefits from a weaker dollar—as key drivers behind the upgrade.
Coupang’s “Product Commerce flywheel” in Korea remains firmly in motion, with superior service boosting traffic, expanding product selection, increasing scale and margins, and ultimately delivering more value to consumers. Despite competitive pressure, Coupang has continued to gain market share without disruption.
Morgan Stanley forecasts 41% adjusted EBITDA growth in 2025, led by margin expansion in its core Product Commerce segment. Operating efficiency gains—particularly a decline in OG&A as a percentage of revenue—are expected to support a 150 basis point year-over-year improvement in segment margins, reaching 9% and contributing an additional $700 million in EBITDA.
Even after a 23% year-to-date rally, the firm sees valuation as attractive at 23x EV/EBITDA on 2025 estimates, compressing to just 15x by 2026, reinforcing the stock’s compelling long-term risk-reward profile.
