Morgan Stanley Lifts Vipshop Holdings Ltd (VIPS) Price Maintains ‘Equalweight’ Rating

Vipshop Holdings Limited (NYSE:VIPS) is one of the best mid-cap value stocks to buy right now. On August 18, analysts at Morgan Stanley raised the stock’s price target to $16 from $15 while reiterating an ‘Equalweight’ rating.

Morgan Stanley Lifts Vipshop Holdings Ltd (VIPS) Price Maintains ‘Equalweight’ Rating

The price target hike comes on the company issuing guidance that indicates third-quarter revenue is expected to increase by between 0% and 5%, which should lead to a net profit margin of between 6.5% and 7%. In addition, the research firm remains buoyed by Vipshop signaling user growth, with new user acquisition returning to a positive trajectory.

For the full year, Morgan Stanley expects the company to post a 1% decline in revenue with non-GAAP net profit of about 9 billion yuan. The investment bank also expects top-line growth and disciplined cost control measures, which should lead to a 3% increase in net profit in 2025 and a 5% increase in 2026.

Vipshop Holdings Limited (NYSE:VIPS) is a leading Chinese online discount retailer that specializes in selling a wide range of products, including fashion, home goods, beauty, and lifestyle items, through a flash sales model. It partners with brands to offer their inventory at discounted prices for limited periods on its online platforms and physical retail locations.

While we acknowledge the potential of VIPS to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than VIPS and that has 100x upside potential, check out our report about this cheapest AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.