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Vipshop’s Stable Financial Position and Limited Upside Potential: Hold Rating Analysis

Vipshop’s Stable Financial Position and Limited Upside Potential: Hold Rating Analysis

Morgan Stanley analyst Eddy Wang maintained a Hold rating on Vipshop today and set a price target of $15.00.

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Eddy Wang’s rating is based on a combination of factors that reflect Vipshop’s recent financial performance and future outlook. The company’s total revenue for the second quarter of 2025 was RMB 25.8 billion, which represents a 4% decline year-over-year and aligns with the lower end of the company’s guidance. Despite this, the gross merchandise volume saw a modest increase of 2% year-over-year, indicating some positive momentum.
Looking ahead, Vipshop’s guidance for the third quarter of 2025 suggests a revenue growth of 0-5% year-over-year, slightly surpassing Bloomberg’s consensus expectations. Additionally, the company’s non-GAAP operating profit and net profit were in line with or slightly above consensus estimates, reflecting stable profitability. The ongoing share repurchase program, with a significant portion still unutilized, also supports the stock’s valuation. These mixed indicators contribute to the Hold rating, as they suggest limited immediate upside potential but a stable financial position.

According to TipRanks, Wang is an analyst with an average return of -9.7% and a 26.32% success rate. Wang covers the Consumer Cyclical sector, focusing on stocks such as PDD Holdings, Vipshop, and JD.

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