In a report released today, Charlene Liu from HSBC maintained a Hold rating on Vipshop (VIPS – Research Report), with a price target of $15.50.
Charlene Liu’s Hold rating for Vipshop (VIPS) is based on a combination of factors. One of the positive aspects she highlights is VIPS’ commitment to shareholder returns through its share buyback plans. There is a significant amount of the current buyback quota that remains unused and the firm has plans to increase this quota once exhausted. This sustained commitment is expected to continually support the stock price.
However, Liu also notes some challenges facing the company. She has become more conservative regarding VIPS’ 2024 growth outlook due to a decrease in visibility of a macro turnaround, weaker consumer sentiment, and increased competition. Furthermore, she anticipates that revenue growth will continue to lag behind GMV growth due to higher return rates. This trend is expected to persist. Despite these challenges, Liu believes there will be a rise in earnings as a result of an anticipated uplift in GPM due to fewer coupons being handed out. The positive impact on earnings is expected to more than offset the increased fulfilment costs and marketing expenses. As a result of these factors, Liu maintains a Hold rating for VIPS.
According to TipRanks, Liu is an analyst with an average return of -3.0% and a 35.94% success rate. Liu covers the Consumer Cyclical sector, focusing on stocks such as Vipshop, JD, and SJM Holdings.
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Vipshop (VIPS) Company Description:
VipShop Holdings Ltd. engages in the provision of online products sales and distributions services. It offers womenswear; menswear; footwear; accessories; handbags; apparel for children; sportswear and sporting goods; cosmetic goods; home and lifestyle products; luxury goods; and gifts and miscellaneous. It cooperates with domestic and overseas brand agents and manufacturers. The company was founded by Ya Shen and Xiao Bo Hong on August 22, 2008 and is headquartered in Guangzhou, China.
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