UPDATE: Morgan Stanley Reiterates Overweight Rating, Raises PT on Vipshop Holdings Ltd. on Robust Consumer Growth

In a report published Thursday, Morgan Stanley analyst Robert Lin reiterated an Overweight rating on

, and raised the price target from $25.90 to $28.00. In the report, Morgan Stanley noted, “Shares sold off given investors' concerns over slowing qoq additions in active customers. However, based on our estimate derived from company's guidance, we think active customers and orders of core flash sales business grew 14% and 2% qoq, respectively. Specifically, we think its Group Buy business' customer and orders declined 50% and 60% qoq, respectively. Given relatively small GMV contribution of the Group Buy business or 3% of GMV in 3Q14 (5% in 2Q), we expect Vipshop to maintain robust growth after rebasing this year. Its Lefeng unit saw sequentially declining number of active customers and orders; further dragging its 3Q results.” Vipshop Holdings Ltd. closed on Wednesday at $22.44.