Deutsche Bank downgraded Vipshop Holdings (NYSE: VIPS) from Buy to Hold with a price target of $16.90 (from $16.60). Analyst Alan Hellawell believes shares are approaching fair value.

"Vipshop 2Q delivered a 7% beat on rev and in-line non-GAAP net income. Even a similar beat on 3Q guidance of 37%-43% would imply YoY slowing over 2Q, despite comparing against a weak 3Q 2015. A continued focus on younger customers will further pressure ARPU. Vipshop has surged 44% since delivering a message of renewed confidence at our June 30th conference (Nasdaq +8%.) We move to the sidelines as the shares approach fair value. Evidence of new growth initiatives would sustain a re-rating. We maintain our valuation at 0.8X PEG, raise TP by 1.8% and downgrade Vipshop to Hold," said Hellawell.

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Shares of Vipshop Holdings closed at $16.07 yesterday.