UPDATE: Jefferies Initiates Coverage On Vipshop

In a report released Wednesday, Jefferies analyst Cynthia Meng initiates coverage on Vipshop VIPS with a Buy rating and $240.00 price target.

Analysts at Jefferies are bullish on Vipshop for being the leader in flash sales and for capitalizing on China. Vipshop sees potential in China's discount retail market for lacking penetration by its competitors.

Jefferies anticipates strong organic growth as Vipshop margins continue to expand and acquisition-led revenue.