- Vipshop (VIPS +7.4%) shares climb after Piper Jaffray reiterates an Overweight rating and hikes its PT to $102 from $77.
- Analyst Gene Munster notes that both Vipshop's Q3 results and Q4 guidance came ahead of expectations. He sees the trend continuing, as the flash retailer "has a long runway of growth ... Vipshop's apparel business (55% of revenue), for example, has a market share of only 5.2% (2013 PJC est) of China's large and growing $16.7B (USD) discount apparel market."
- Q3 operating margin of 3.1% was ahead of Piper's estimate, "demonstrating the scalability of Vipshop's business model. Over the next several years we expect that Vipshop can continue to leverage its fulfillment expenses as it gains scale and also moves to owning fulfillment centers instead of leasing."
- Fellow Chinese e-commerce peer LightInTheBox (LITB +5.6%) follows.
Vipshop climbs as Piper reiterates Overweight, raises PT to $102
Nov 12 2013, 14:21 ET