NEW YORK (TheStreet) -- Shares of Vipshop (VIPS) - Get Report  were increasing in late-morning trading on Tuesday after the company reported earnings and revenue that topped analysts' estimates for the 2016 second quarter.

After Monday's closing bell, the Chinese online discount retailer posted adjusted earnings of 17 cents per diluted share, exceeding analysts' expectations of 15 cents per share. 

Revenue was $2.02 billion, while analysts were modeling revenue of $1.9 billion.

Vipshop added 8.2 million new customers during the quarter, which is a 50% jump from the same period last year.

For the third quarter, the company forecasts revenue growth between 37% and 43% year-over-year.

Additionally, the stock was upgraded to "buy" from "neutral" at Bank of America/Merrill Lynch earlier today.

Stifel raised its price target on shares to $21.50 from $18 and maintained its "buy" rating following the results, the Fly reports. The firm believes the company's strategy of keeping its margins stable, while investing its excess profits is working.

About 17.38 million of the company's shares changed hands so far today vs. its average volume of 6.86 million shares per day.

Separately, TheStreet Ratings Team has a "Buy" rating with a score of B- on the stock.

The company's strengths can be seen in multiple areas, such as its impressive record of earnings per share growth, robust revenue growth, notable return on equity, reasonable valuation levels and largely solid financial position with reasonable debt levels by most measures.

The team believes its strengths outweigh the fact that the company shows low profit margins.

Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.

You can view the full analysis from the report here: VIPS

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