Vipshop (VIPS – Research Report), the Consumer Cyclical sector company, was revisited by a Wall Street analyst today. Analyst Alicia Yap from Citi downgraded the rating on the stock to a Hold and gave it a $18.00 price target.
Alicia Yap’s rating is based on a combination of factors, including Vipshop’s anticipated revenue performance and market conditions. The company is expected to report flat to slightly declining revenues for the first quarter of 2025, with a forecasted decrease of 4.9% year-over-year. This is attributed to adverse weather conditions affecting demand for spring clothing, which has led to a cautious outlook for the first half of the year.
Furthermore, despite expectations of a return to growth in the second half of 2025, the overall revenue for the year is projected to remain flat. The lack of significant near-term growth catalysts and an expected share price return of less than 15% have contributed to the decision to downgrade the stock to a Hold rating. The revised estimates for 2025-2027 reflect a more conservative view on the demand for discretionary items, such as apparel, which remains sensitive to external factors like weather and promotional seasons.