Vipshop stock price target raised to $23.60 from $20.20 at BofA Securities

Investing.com - BofA Securities raised its price target on Vipshop Holdings (NYSE:VIPS) to $23.60 from $20.20 while maintaining a Buy rating on the Chinese e-commerce company. Currently trading at $20.29, Vipshop appears undervalued according to InvestingPro analysis, with shares trading at a modest P/E ratio of 9.6.

The price target increase follows Vipshop’s third-quarter performance, which saw total revenue growth of 3% year-over-year, exceeding both consensus estimates and the midpoint of company guidance.

The growth was driven by accelerated performance in apparel GMV, stabilization in non-apparel categories, and an 11% year-over-year increase in Super VIP members, who contributed 51% of online product sales. The company’s offline ShanShan Outlets business also posted solid growth, with GMV increasing over 20% year-over-year. This operational success has contributed to Vipshop’s impressive 42.77% price return over the past six months.

For the fourth quarter, Vipshop management has guided for 0-5% year-over-year revenue growth, with Double 11 shopping festival results reinforcing a trend of sustained improvement in consumer demand that began accelerating in the third quarter. The fashion apparel segment has returned to growth after several quarters of stagnation.

Management highlighted that AI-driven enhancements to search results and in-platform product recommendations have significantly improved conversion rates, while internal team restructuring has strengthened category cross-selling capabilities. InvestingPro data shows Vipshop maintains strong financial health with a "GREAT" overall score and holds more cash than debt on its balance sheet. For deeper insights and additional ProTips on Vipshop, check out the comprehensive Pro Research Report available with an InvestingPro subscription.

In other recent news, Vipshop Holdings reported its third-quarter 2025 earnings, surpassing analyst expectations. The company achieved an earnings per share (EPS) of $2.98, beating the forecast of $2.91. Vipshop also exceeded revenue projections, reporting $21.37 billion compared to the expected $21.07 billion. These results mark a return to growth for Vipshop after nearly two years of a downcycle. Benchmark has maintained its Hold rating on Vipshop stock following these results. The research firm expressed an "incrementally positive" outlook on the company after this performance. Despite the positive earnings report, Vipshop’s stock experienced a dip in pre-market trading, which may reflect investor caution amid broader market conditions.

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