Vipshop Holdings rises as analysts upgrade on signs of 'recovering demand'

Robert Way

Vipshop Holdings (NYSE:VIPS) shares rose fractionally in early trading on Friday even as a couple of investment firms upgraded the Chinese e-commerce company after it reported fourth-quarter results on signs of "recovering demand."
CLSA analyst Leo You raised the firm's rating on Vipshop Holdings (VIPS) shares to buy from outperform and boosted the per-share price target to $17 from $11, noting that the fourth-quarter results topped estimates and an "abundant" supply of apparel should help the company.
You also noted that Vipshop Holdings (VIPS) started to pursue active customer growth and keep margins stable. As such, the analyst raised their net profit estimates for both 2023 and 2024.
- Nomura Securities analyst Jialong Shi also upgraded Vipshop Holdings (VIPS), citing a recovery in apparel demand and "attractive valuation."
- "Apparel accounts for 70% of VIPS’ sales currently, making it an attractive proxy to play a likely turnaround in Chinese apparel demand," Shi wrote in an investor note.
Last month, Hedgeye listed Vipshop Holdings (VIPS) as a new short position, calling it a "mature, discount flash sale e-retailer that has lost its identity."