Analyst Reiterates Buy on Baozun, Sees Improving Profitability and Maintains $3.98 Price Target

Analyst Saiyi He of CMB International Securities maintained a Buy rating on Baozun, retaining the price target of $3.98.

Saiyi He has given his Buy rating due to a combination of factors, primarily the company’s stronger-than-expected first-quarter performance and improving profitability trends. Baozun’s revenue grew at a double-digit pace, outpacing both the firm’s own forecasts and market consensus, while non-GAAP earnings swung from a loss to a small profit as both the e-commerce and brand management segments became more efficient.

Saiyi He’s rating is based on the expectation that this solid growth momentum will extend into the next quarter and beyond, supported by a strategic focus on higher-quality revenue and service upgrades that should further enhance margins. He also believes Baozun is progressing well toward its 2028 profitability goal and sees the current valuation, reflected in the unchanged sum-of-the-parts price target of $3.98, as attractive relative to its earnings and cash position outlook.