VIPS Stock Price: $29 Target By Citi

By Amit Chowdhry ● November 18, 2020
  • Shares of Vipshop Holdings Ltd (NYSE: VIPS) have received a price target increase from $24 to $29 by Citi. These are the details.

Shares of Vipshop Holdings Ltd (NYSE: VIPS) have received a price target increase from $24 to $29 by Citi. And Citi analyst Alicia Yap is also maintaining a “Buy” rating on the shares.

In a note to investors, Yap said that Vipshop’s efforts for driving customer acquisition through enriched merchandising, brand ad campaign, and improving personalization matching has accelerated growth in the third-quarter. For the third quarter, Vipshop had beat earnings and revenue forecasts.

The total net revenue for the third quarter of 2020 increased by 18.2% year-over-year to RMB23.2 billion (US$3.4 billion) from RMB19.6 billion in the prior year period. The GMV for the third quarter of 2020 increased by 21% year over year to RMB38.3 billion from RMB31.7 billion in the prior year period. Gross profit for the third quarter of 2020 increased by 15.3% year-over-year to RMB4.9 billion (US$718.9 million) from RMB4.2 billion in the prior year period. The net income attributable to Vipshop’s shareholders for the third quarter of 2020 increased by 42.1% year over year to RMB1.2 billion (US$183.3 million) from RMB875.5 million in the prior year period. And non-GAAP net income attributable to Vipshop’s shareholders for the third quarter of 2020 increased by 15.2% year over year to RMB1.4 billion (US$204.1 million) from RMB1.2 billion in the prior year period.

Vipshop’s number of active customers for the third quarter of 2020 increased by 36% year over year to 43.4 million from 32.0 million in the prior year period. And total orders for the third quarter of 2020 increased by 35% year over year to 172.8 million from 127.6 million in the prior year period.

“We finished the third quarter of 2020 with robust financial and operational results. During the quarter, our number of active customers increased by 36% year over year to 43.4 million from 32.0 million in the prior year period. Importantly, both our existing and new customers have shown improved next-month retention as compared to the same period last year. We are glad that customers recognize the value of our differentiated offerings, particularly in our core apparel-related categories. We are confident the positive trends in customer acquisition and retention will continue to drive our growth and profitability going forward. Looking ahead, we remain focused on providing value to our customers, offering superior customer experience and carefully procured assortments at a deep discount, further enabling us to gain share in China’s discount retail market,” said Eric Shen, Chairman and Chief Executive Officer of Vipshop.

Citi is not the only brokerage to increase the target price for Vipshop. UBS increased its price target from $27 to $29. And KeyCorp also increased its price target from $24 to $25.