J. P. Morgan cuts Vipshop PT on weak consumer sentiment

Vipshop Holdings

27/09/2022 22:02

** J.P. Morgan cuts its PT for Chinese e-commerce co Vipshop
Holdings  VIPS.N , reiterates 'neutral' rating on stock
    ** Brokerage lowers Q3 revenue estimates, citing very
limited improvement in consumer sentiment and resurgence of
COVID cases across China in late August which has dragged demand
in certain regions
    ** Despite low visibility for 4Q22, think it has become more
difficult for its revenue to return to flat YoY, as some more
bullish investors hoped, unless there is meaningful relaxation
on COVID policies - analyst Andre Chang
    ** Still, J. P. Morgan says weak macro environment which led
co to cut marketing spending should provide an upside for its
earnings in Q3 and Q4
    ** 11 of 25 brokerages rate stock "buy" or higher, 14
"hold"; their median PT is $11.25 - Refinitiv data
 (Reporting by Mehr Bedi in Bengaluru)
 ((Mehr.Bedi@thomsonreuters.com;))