UPDATE: Goldman Sachs Initiates Coverage on Vipshop Holdings Limited

According to a research report published earlier today, Goldman Sachs initiated Vipshop Holdings Limited

with a Buy rating and $8.00 PT. In the report, Goldman Sachs said, "Vipshop's online flash sales model is positioned to benefit from rapid Chinese online brand shopping growth and addresses existing significant demand from suppliers to sell excess inventory efficiently. We view the characteristics of flash sales companies as distinct from general multi-category e-tailer platforms or marketplaces, resulting in less competitive intensity than such winner-take-all industries. We forecast Vipshop will turn profitable in 2013E as the company grows revenue from US$227mn in 2011 to US$1.2bn in 2013 and scales up off its cost structure." Vipshop closed yesterday at $5.46.