CPNG - Coupang is a buy at Bank of America with profitability expected to improve

Bank of America reiterated a Buy rating on Coupang ( NYSE: CPNG ) after the e-commerce company's Q2 results. The firm pointed to clearer visibility on an EBITDA recovery trend and to CPNG management's primary focus on profit rationalization.

Financial results are seen improving for Coupang ( CPNG ) shortly, with 2023 adjusted EBITDA forecast at $284M and 2024 adjusted EBITDA forecast at $659M.

BofA's bullish thesis on CPNG: "We consider Coupang as a structural larger market cap, liquid internet story that is best placed to benefit as consumer traction improves in the coming years. In our view, the company provides multiple optionalities like 1) emerging into a dominant player in Korean EC with 35%+ market share, 2) strong traction in Japan quick commerce (non-restaurant orders), and 3) monetizing payments and other fintech by increasing BNPL volume."

The Seeking Alpha Quant Rating on CPNG is at Hold, but the quant score of 3.35 is the highest level of the year.

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