Shares of the Chinese online fashion retailer Vipshop Holdings Ltd – ADR (NYSE:VIPS) surged 5.01% on Monday to hit 52-week high of $24.51 (split-adjusted). Investors expect the company to register strong online sales on the Singles’ Day promotional event, the biggest shopping event in China. The company’s 10-for-1 stock split became effective on Nov.3.

Vipshop Holdings Ltd Jumps On Singles' Day Event

Vipshop to release Q3 results next week

The Guangzhou-based company’s stock had been under pressure amid concerns that Alibaba Group Holding Ltd (NYSE:BABA) would shift investors’ attention away from smaller rivals. Vipshop shares had declined more than 22% between Aug.13 and Oct.13. However, analysts remain bullish on the online apparel discounter.

Barclays analyst Alicia Yap said in a research note that she expects rapid growth of Chinese online flash sales market. What’s more, Vipshop has a “highly sticky customer base” with pretty good repeat purchasing rate. Barclays has updated its price target and estimates to reflect the 10-for-1 American depository stock split. The research firm has revised its price target from $250 to $25 with an Overweight rating. For FY2014, Yap now forecasts non-GAAP diluted EPS of $0.309, down from the previous estimate of $3.09 to reflect the split.

Vipshop is scheduled to release its third-quarter results on Tuesday, Nov.18. The company has guided Q3 revenue between $850 million and $860 million, up 123% at mid-point from the same quarter last year. Analysts polled by Thomson Reuters have called for $857.60 million in revenue and 71 cents in EPS. The company had earned 26 cents in the same quarter last year.

Vipshop to keep gaining market share

Vipshop is expected to keep gaining market share as it benefits from investments in mobile technology and supply chain improvements. Despite a slowdown in Chinese economy, the government is committed to supporting consumption in six segments including online retail. Currently, 24 analysts cover the stock. Of them, 21 have a Buy rating on Vipshop.

Vipshop shares fell 0.10% to $24.50 in pre-market trading Tuesday.