In a report released on April 26, Thomas Chong from Jefferies reiterated a Buy rating on Baozun (BZUN – Research Report), with a price target of $3.00.
Thomas Chong has given his Buy rating due to a combination of factors including Baozun’s expected performance and strategic positioning. Chong anticipates that Baozun will deliver first quarter results for 2024 in line with estimates for both total revenue and non-GAAP earnings. Despite the warmer weather possibly affecting apparel sales, Baozun’s diversified offerings should support its performance. Additionally, the company’s focus on profitability from a brand perspective is seen as a positive sign. The expectation of the full-year outlook being on track further supports the Buy rating.
The analysis highlights that Baozun’s Brand E-commerce (BEC) segment may experience a slight decline, yet this is counterbalanced by the significant potential growth in the Baozun Brand Management (BBM) segment, particularly with contributions from GAP. Chong’s report also looks forward to the upcoming earnings call which will provide insights into consumer sentiment, sales performance, and strategic initiatives. The overall assessment remains optimistic, considering the latest business developments and notwithstanding the risks of new entrants, macroeconomic headwinds, and potential shifts in brands’ strategies.
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Baozun (BZUN) Company Description:
Baozun, Inc. is a holding company, which engages in the provision of brand electronic commerce (E-commerce) services and solutions. It also involves in online store shopping site operations, digital marketing, technology and customer service, and supply chain management service. The company was founded by Wen Bin Qiu, Jun Hua Wu, and Qing Yu Zhang in August 2007 and is headquartered in Shanghai, China.
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