Street Calls of the Week
Investing.com - BofA Securities raised its price target on Vipshop Holdings (NYSE:VIPS) to $20.20 from $17.20 on Wednesday, while maintaining a Buy rating on the Chinese online discount retailer. The stock, currently trading at $18.22, has shown impressive momentum with a 45% gain over the past six months. According to InvestingPro analysis, the company appears undervalued based on its Fair Value metrics.
The firm expects Vipshop to report third-quarter 2025 results on November 13, forecasting net revenue of RMB21.2 billion, up 2.5% year-over-year, which would meet consensus estimates and fall within the company’s guidance range of 0-5% growth. The company maintains strong financial health with a P/E ratio of 10.75, suggesting attractive valuation levels.
BofA Securities attributes the anticipated return to growth primarily to improving customer momentum and apparel demand, as well as comparisons against a relatively low base from the third quarter of 2024, when revenue declined 5.6% year-over-year.
The firm projects a third-quarter gross margin of 23.6%, slightly below the 24.0% recorded a year ago, reflecting more competitive pricing in 2025, while forecasting non-GAAP net profit of RMB1.5 billion, 4% above consensus estimates.
BofA Securities expects positive momentum to continue into the fourth quarter of 2025, despite slightly tougher year-over-year comparisons, and forecasts fourth-quarter net revenue growth of 1.4% year-over-year, assuming apparel demand benefits from one month of harsh winter weather.
In other recent news, Vipshop Holdings Limited reported its second-quarter 2025 earnings, surpassing expectations with an earnings per share (EPS) of 4.06, compared to the forecasted 3.98. The company’s revenue also slightly exceeded predictions, reaching 25.81 billion yuan. These results reflect recent developments in the company’s financial performance. Vipshop’s earnings announcement was followed by a rise in investor optimism. Analyst reports from various firms have noted these positive earnings results. The earnings call highlighted the company’s ability to outperform market expectations. Investors are closely watching these developments as they consider their positions.
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