Data Breach Hurts Coupang, Inc. (CPNG), But Analyst Keeps Overweight Rating

Coupang, Inc. (NYSE:CPNG) is among the most promising growth stocks according to analysts. According to an Investing.com report, Morgan Stanley maintained an ‘Overweight’ rating on Coupang, Inc. (NYSE:CPNG), as well as a price target of $31. This reaffirmation, suggesting an upside potential of about 40%, follows earlier updates related to a user data breach.

The analysts pointed out that the recent breach, which happened over the past month, has led to increased regulatory risk for the South Korean e-commerce giant. Morgan Stanley believes these risks will continue to be a drag on the stock and thus, push for additional resources. With that said, the firm expects market sentiment to remain muted until there is a clear result of the current investigations into the data breach. Despite near-term headwinds, Morgan Stanley is optimistic about the company’s long-term prospects.

Earlier, on December 29, Coupang, Inc. (NYSE:CPNG) announced 1.69 trillion won ($1.18 billion) to holders of 33.7 million accounts as compensation for a huge data leak that disappointed both users and lawmakers. A day before, Coupang founder Kim Bom apologized for last month’s mishap and promised to expedite compensation measures.

Coupang, Inc. (NYSE:CPNG) is a Washington-based company with retail business through its mobile applications and websites in South Korea and internationally. Founded in 2010, the company operates in two segments: Product Commerce and Developing Offerings.

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