UPDATE: Deutsche Bank Upgrades Vipshop Holdings Following Channel Checks

In a report published Wednesday, Deutsche Bank analyst Alan Hellawell III upgraded the rating on Vipshop Holdings Ltd. (NYSE: VIPS) from Hold to Buy, and raised the price target from $43.00 to $66.00.

In the report, Deutsche Bank noted, “Channel checks suggest a rebound in VIPS traffic in Jul/Aug (a seasonally slow period) from June lows, significantly alleviating competitive concerns around the co, and reaffirming LT growth potential. We expect VIPS to benefit from its unique consignment model and improving fulfillment capabilities, which should solidify segment leadership. Near term op margin may be under pressure on frequent promotions. We hike PEG ratio to 0.8X, roll forward our val to FY14E and u/g to BUY on significant upside.”

Vipshop Holdings Ltd. closed on Tuesday at $51.35.