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Research Alert: CFRA Maintains Buy Opinion On Adss Of Vipshop Holdings Limited

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CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:

We lower our 12-month target price for Vipshop to USD18.00 (from USD21.00), based on 6.6x our 2026 EPADS estimate. The P/E multiple represents a valuation broadly in line with the company's three-year historical average of 6.5x, which we believe is justified by: (i) strategic growth in the high-value SVIP customer segment; (ii) demonstrated earnings resilience despite challenging macroeconomic conditions; and (iii) disciplined cost management. We keep our 2026 EPADS estimate at CNY18.50 and lower 2027's to CNY20.30 from CNY20.32. While near-term revenue visibility remains limited given macroeconomic headwinds and cautious Q2 2026 guidance, we expect sequential improvement in 2H 2026 as seasonality normalizes and AI-driven merchandising initiatives gain traction. We believe the market is underestimating Vipshop's defensive business model resilience even as the management has demonstrated commitment to shareholder returns through both dividends and buybacks.

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