Saiyi He, an analyst from CMB International Securities, maintained the Buy rating on Baozun. The associated price target is $3.81.
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Saiyi He has given his Buy rating due to a combination of factors including Baozun’s sustained profitability improvement and strategic transformation efforts. The company’s third-quarter results showed a significant narrowing of non-GAAP net loss, primarily driven by gross margin expansion and cost optimization. Baozun E-commerce (BEC) turned around its operating profit, while Baozun Brand Management (BBM) achieved substantial revenue growth, particularly from the strong performance of brands like GAP and Hunter.
Saiyi He also noted the company’s operational efficiency improvements, such as better inventory turnover and reduced fulfillment costs, which contributed to its profitability. The outlook for the fourth quarter remains positive, with expectations of continued revenue growth and profitability improvements. The strategic initiatives, including marketing campaigns and store expansions, have strengthened brand positioning and customer base, particularly among younger consumers. Consequently, the target price has been raised to US$3.81, reflecting a positive outlook for Baozun’s future performance.
He covers the Communication Services sector, focusing on stocks such as Baidu, Tencent Holdings , and Iqiyi. According to TipRanks, He has an average return of 13.1% and a 56.29% success rate on recommended stocks.