China-based e-commerce firm Vipshop Holdings Ltd. (VIPS) has lowered its guidance for the fourth quarter of 2021. It now expects total net revenue to range from RMB 34 billion to RMB 35.8 billion, reflecting a 5% to 0% decline year-over-year.
Earlier, the company expected total net revenue in the range of RMB 35.8 billion to RMB 37.6 billion, representing a year-over-year rise of around 0% to 5%.
Following the announcement, after the market closed on Monday, the stock slipped 1.6% to end the day at $8.11.
Vipshop offers high-quality and popular branded products to consumers throughout China at a significant discount to retail prices.
Wall Street’s Take
Last month, Bank of America Securities analyst Joyce Ju maintained a Buy rating on the stock but lowered the price target to $17 from $33 (106.3% upside potential).
Additionally, Alicia Yap, an analyst at Citigroup (C), downgraded the rating on Vipshop to Hold from Buy with a price target of $11 (33.5% upside potential).
Overall, the stock has a Hold consensus rating based on 1 Buy and 4 Holds. The average VIPS stock forecast of $13.33 implies 61.8% upside potential. Shares have lost 68.4% over the past year.
TipRanks’ Website Traffic Tool, which uses data from SEMrush Holdings (SEMR), the world’s biggest website usage monitoring service, offers insight into Vipshop’s performance.
According to the tool, compared to the previous year, Vipshop’s website traffic registered a 22.7% decline in global visits in November. However, the website traffic has increased 10.3% year-to-date against the same period last year.
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