CLSA Downgrades Vipshop Holdings (VIPS) to Hold (3)

CLSA analyst Leo You downgraded Vipshop Holdings (NYSE: VIPS) from Outperform (2) to Hold (3) with a price target of $12.00 (from $15.80).

The analyst comments: "Vipshop reported soft 2Q24 results, with total revenue down 3.6% YoY to US$26.9bn, and adj net profit of Rmb2.2bn with an 8.1% margin, down 0.6ppt YoY. 3Q revenue guidance implies a 5-10% YoY decline, a negative surprise. We expect 4Q to remain under pressure, given a high base, which could drag margins as well. Despite another US$1bn share buyback announced, we still see pressure on the share price. We cut 24/25CL adj net profit by 3%/9%, and lower our TP from US$15.80 to US$12.00, based on 5x 25CL adj PE (from 6x). We downgrade our rating from O-PF to Hold."

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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