In today’s briefing:
- [Coupang Inc. (CPNG US, SELL, TP US$14.1) TP Change]: Farfetch May Glitter, but It Isn’t Gold
- Upgrading Mexico to Overweight; Technology Remains Global Leadership; Overall Bullish Outlook Intact
[Coupang Inc. (CPNG US, SELL, TP US$14.1) TP Change]: Farfetch May Glitter, but It Isn’t Gold
- CPNG will provide Farfetch with a bridge loan to save it from default. In exchange, CPNG acquires Farfetch business and its US$ 460mn+ net debt.
- For Farfetch to achieve profitability, CPNG will need to conduct major layoffs and cancel brand deals, but both are difficult to achieve, in our view.
- CPNG only found limited overseas success in Taiwan, and EU poses an even greater challenge. We cut TP to US$ 14.1 on increased debt and FCF burden.
Upgrading Mexico to Overweight; Technology Remains Global Leadership; Overall Bullish Outlook Intact
- Recent developments have continued to reinforce our bullish outlook on global equities (MSCI ACWI).
- There is no reason to fight this bullish trend, and we continue to expect more upside into the early part of 2024.
- Upgrading Mexico to Overweight; Technology Remains Global Leadership; Actionable Themes: 44 individual stock buy recommendations within Technology, Services, Consumer Discretionary, Financials, and Materials
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