NEW YORK (TheStreet) -- Shares of Vipshop Holdings (VIPS) are increasing 0.68% to $26.57 in Wednesday's pre-market trading after analysts at Stifel Nicolaus initiated coverage of the company this morning.
The firm set a "buy" rating with a price target of $32.
"Vipshop is China's leading online discount retailer of brands through its website www.vip.com. The company offers new but excess apparel inventory from mid-level and premium brands at discounted prices in a flash sale format to Chinese consumers," analysts said.
Other factors supporting the "buy" rating were the company's e-commerce business model, which is unique in China, a visionary management team focused on growth, and the Chinese apparel market opportunity being large, at an estimated $200 billion.
TheStreet Ratings team rates VIPSHOP HOLDINGS LTD -ADR as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
"We rate VIPSHOP HOLDINGS LTD -ADR (VIPS) a BUY. This is driven by a number of strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its robust revenue growth, notable return on equity, impressive record of earnings per share growth, compelling growth in net income and solid stock price performance. We feel its strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated."
Highlights from the analysis by TheStreet Ratings Team goes as follows: