Market Overview

Making The Case For Nearly 20% Upside In Baozun Shares

Making The Case For Nearly 20% Upside In Baozun Shares
Related BZUN
26 Stocks Moving In Thursday's Pre-Market Session
22 Stocks Moving In Wednesday's Pre-Market Session

Analysts at Bank of America turned incrementally bullish on Baozun Inc (ADR) (NASDAQ: BZUN), a China-based e-commerce solutions company that engages in the sales of apparel, home, electronic products and more. The firm's Binnie Wong maintains a Buy rating on Baozun's stock with a price target raised from $34 to $38 after hosting an investor meeting with the company's management team.

Baozun emphasized its unique strategic positioning within the Chinese e-commerce market along with its strong ties between brands and Alibaba Group Holding Ltd (NYSE: BABA)'s ecosystem to fuel growth, Wong noted. The company was also selected to be one of just eight databank partners by Alibaba and it also happens to be the only company that is able to provide a full-range of end-to-end e-commerce and digital marketing solutions.

Meanwhile, Baozun's new commission-based structure will likely result in the company capturing more upside on brand partners' performances, the analyst continued. In addition, the company believes that improvements to its own technology and the use of robotic services will compensate for the loss of fixed fees.

Baozun is also focusing more on online branding marketing trends which will help the company gain exposure into categories that have low presence online.

Finally, management reiterated that its large capex expansion of RMB350 million in 2017 is indeed a one-off investment and is expected to provide enough capacity for mid-term growth, the analyst also highlighted.

Related Links:

At Current Valuation, Baozun Shares Have All The Positive Priced In

Baozun Blasted Despite Q2 Beat

Latest Ratings for BZUN

Jan 2018Bank of AmericaMaintainsBuyBuy
Sep 2017Bank of AmericaMaintainsBuy
Aug 2017Deutsche BankDowngradesBuyHold

View More Analyst Ratings for BZUN
View the Latest Analyst Ratings

Posted-In: AlibabaAnalyst Color Long Ideas Price Target Reiteration Analyst Ratings Tech Trading Ideas Best of Benzinga


Related Articles (BABA + BZUN)

View Comments and Join the Discussion!

Latest Ratings

CNPRBC CapitalUpgrades34.0
View the Latest Analytics Ratings
Don't Miss Out!
Join Our Newsletter
Subscribe to:
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Daily Analyst Rating
A summary of each day’s top rating changes from sell-side analysts on the street.
Fintech Focus
Your weekly roundup of hot topics in the exciting world of fintech.
Thank You
for registering for Benzinga’s newsletters and alerts.
• The Daily Analysts Ratings email will be received daily between 7am and 10am.
• The Market in 5 Minutes email will be received daily between 7am and 8am.
• The Fintech Focus email will be received every Friday between 2pm and 5pm.

United Natural Foods: Big Upside On Positive Earnings

Deutsche Bank Doesn't Like MGM's Odds