Vipshop upgraded to Buy at UBS on apparel demand recovery

As previously reported, UBS upgraded Vipshop (VIPS) to Buy from Neutral with a price target of $17.50, up from $15.50, citing a belief that the company is set to benefit from a demand recovery in its core apparel category. A recovery in apparel demand has been confirmed by both Vipshop and Alibaba (BABA) in their respective Q4 earnings calls as the resumption of offline activities is prompting Chinese shoppers to buy more clothes than they did during lockdowns, said the firm, which also notes that apparel currently accounts for 70% of Vipshop’s sales.