New Street: 3Q21 Preview - D/G to NEUTRAL
What’s New: We updated our 2H21 estimates. In this note, we discuss about the latest updates on the business including overall demand environment and the company’s merchandising strategy. We downgrade shares of VIPS to NEUTRAL with a price target of $13 as we believe business environment will remain challenging in the near term given the macro backdrop, increasing competition and difficult comps. While we remain confident in the management’s ability to weather the near-term soft patch, we do believe it will take a few quarters to turn the corner and show significantupside to current revenue targets. Our new PT of $13 implies a 10.2x FY22E P/E.
Analysts:
Jin Yoon
Provided by our team of experienced analysts, our work is idea driven, based on independence of thought, sector expertise, and firmly focussed on fundamentals and valuation.
New Street Research is an independent, partner-owned, research firm specialising in equity and debt research. Our equity research embraces the following sectors:
- Pan European Telecom Services and Cable
- US Telecoms, Cable, Satellite and Towers
- Global Emerging Market Telecoms
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- Pan European Healthcare
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We provide debt research on:
- Pan European Telecom Services and Cable
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