UBS upgrades Vipshop to Buy on earnings ‘resilience’

UBS late Friday upgraded Vipshop (VIPS) to Buy from Neutral with a price target of $18.50, down from $20. The company’s growth will remain under pressure in the near-term due to “muted” consumption and “intense” e-commerce competition, the analyst tells investors in a research note. However, UBS cites Vipshop’s “attractive” earnings quality and shareholder returns for the upgrade. The company’s earnings will show “resilience” given its strong first-party margin control and increasing contributions from the Shanshan offline outlets, which uses a take-rate model and is margin-accretive, contends the firm. It sees potential acceleration of share buybacks, improving consumption trends, and asset monetization as second half of 2026 catalysts.