Bernstein Starts Vipshop Holdings (VIPS) at Underperform

Bernstein initiates coverage on Vipshop Holdings (NYSE: VIPS) with a Underperform rating and a price target of $10.00.

Analyst Bhavtosh Vajpayee comments "Vipshop operates a flash sales model, whose addressable market is about 25% of the total ecommerce pie, based on categories and user amenability. This implies that Vipshop eventually should grow slower than overall ecommerce GMV. This pull of gravity is at hand — we expect 2017 to be the last year when Vipshop could show above-industry growth, after which it begins to lag in 2018 and beyond. Category expansion will imply fulfillment challenges, as average order sizes and average orders per customer fall."

For an analyst ratings summary and ratings history on Vipshop Holdings click here. For more ratings news on Vipshop Holdings click here.

Shares of Vipshop Holdings closed at $11.56 yesterday.

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