Baozun reported better-than-expected 2Q results on Friday mainly driven by a recovery in e-commerce sales and an increase in brand partners. Shares are up 2.6% in the pre-market trading today.
Baozun’s (BZUN) adjusted EPS jumped 61.9% to $0.34 year-on-year surpassing analysts’ expectations of $0.23. The e-commerce solution provider’s revenues soared 22.7% to $304.6 million year-over-year, beating Street estimates of $299.1 million.
The company’s total gross merchandise volume, a key revenue metric, grew 31.2% during the quarter. The number of brand partners also increased to 241 in 2Q from 212 at the end of the year-ago quarter. (See BZUN stock analysis on TipRanks).
“Strong recovery in e-commerce, our unique value proposition to brand partners and the tenacity of our team underpinned a solid set of results in the second quarter of 2020, with strong top line growth and remarkably improved profitability,” Baozun CEO Vincent Qiu said. “We believe digitalization and innovation will continue to be key components of our strategy that will strengthen our competitive moat and drive our long-term sustainable growth.”
Citigroup analyst Alicia Yap raised the stock’s price target to $50 (28.6% upside potential) from $43. Yap noted that Baozun’s growth outlook remains intact given its ability to timely adjust operation resources to grab new demand.
Currently, the Street has a bullish outlook on the stock. The Strong Buy analyst consensus is based on 4 Buys and 1 Hold. With shares up 17.4% year-to-date, the average price target of $40.02 now implies upside potential of about 2.9%.
Related News:
GAN Drops 18% On Larger 2Q Loss; Analyst Sticks To Buy
CryoPort Agrees To Acquire Cryopdp For 49M Euros
Pinduoduo Sinks 14% After 2Q Revenues Miss Estimates
