Shares of Coupang, Inc. (CPNG) plummeted 7.36% in intraday trading on Wednesday, as investors reacted to a downgrade from Deutsche Bank and the company's second-quarter results. The significant drop came despite some positive analyst actions, highlighting the market's concerns about the e-commerce giant's near-term prospects.
Deutsche Bank lowered its rating on Coupang to Hold from Buy, while maintaining a price target of $27. This downgrade appears to be a primary factor in the stock's decline, overshadowing the release of the company's Q2 results. While specific details of the earnings report were not provided, the market reaction suggests that the results may have fallen short of investor expectations.
Interestingly, the sharp decline occurs despite some positive analyst actions. JP Morgan raised its target price for Coupang to $37 from $31, while Mizuho increased its target to $30 from $27. Despite the current downturn, Coupang maintains an average rating of overweight among analysts, with a mean price target of $32.05, according to FactSet data. This mixed sentiment among Wall Street analysts adds to the complexity of Coupang's current market position.
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