Shares of Chinese online discount retailer Vipshop Holdings (NYSE:VIPS) popped on Wednesday, rising as much as 13.5%. By market close, the stock was up 9.6%.
The stock's rise was probably primarily driven by an analyst upgrade for the stock, as the analyst named Vipshop one of his top stock picks.
KeyBanc analyst Hans Chung gave Vipshop stock an "overweight" rating, up one sector-weight rating. In addition, the analyst gave the stock a $10 12-month price target, representing 41% upside from where the stock finished the trading day on Wednesday. To support his increased bullishness on the stock, Chung cited Vipshop's improving sales.
Vipshop announced higher-than-expected sales in its third quarter. The company's total revenue for the period was up 16.4% year over year.
For its fourth quarter, more double-digit sales growth is likely. The company guided for fourth-quarter revenue to rise 8% to 13% year over year.