Baozun Inc. (NASDAQ: BZUN): The Best-Of-Breed For Investing?


    Invesco Advisers, Inc. recently announced the acquisition of new stake in Baozun Inc. (NASDAQ:BZUN). The institutional investor has increased its shareholding in the Consumer Cyclical company by 2.41% to 7.62 million shares with purchase of 0.18 million shares. This fresh investment now brings its stake to 16.54% valued currently at $292.97 million. In addition, Templeton Asset Management Ltd. raised its holdings by 7.02 million to 7.02 million shares. And Hermes Investment Management Ltd. has lifted its position by 34.17% or 1.73 million shares – to 6.8 million shares.

    With over 0.42 million Baozun Inc. (BZUN) shares trading Thursday and a closing price of $40.52 on the day, the dollar volume was approximately $16.85 million. The shares have shown a positive weekly performance of 6.44% and its price on 07/30/20 gained nearly 0.22%. Currently, there are 58.59M common shares owned by the public and among those 57.96M shares have been available to trade.

    An analysis of what Wall Street brokers have to say about the expected price targets for this stock gives us this picture: 15 analysts who have offered their price forecasts for BZUN have a consensus price objective of $299.89. The analysts have set the share’s price value over the next 12 months at a high of $353.36 and a low of $231.66 should the stock experience a downside. Incidentally, analysts’ outlook for the Baozun Inc. stock is 1.90 for the next 12 months. The average price target is 1.27% above its last price level and an upside to the estimated low will see the stock gain 82.51% over that period. But an upside of 88.53% will see the stock hit the forecast high price target while mean target price for the stock is $297.26.

    The top 3 mutual fund holders in Baozun Inc. are Invesco Oppenheimer Developing Ma, Hermes Invt. Funds – Global Emerg, and Calvert Emerging Markets Equity F. Invesco Oppenheimer Developing Ma owns 5.72 million shares of the company’s stock, all valued at over $219.97 million. Hermes Invt. Funds – Global Emerg sold -0.23 million shares to see its total holdings shrink to 2.81 million shares valued at over $107.92 million and representing 6.09% of the shares outstanding. Calvert Emerging Markets Equity F bought 26408.0 shares to bring its total holdings to over 1.43 million shares at a value of $54.88 million. Calvert Emerging Markets Equity F now owns shares totaling to 3.10% of the shares outstanding.

    Shares of Baozun Inc. (NASDAQ: BZUN) opened at $39.98, down -$0.45 from a prior closing price of $40.43. However, the script later closed the day at $40.52, up 0.22%. The company’s stock has a 5-day price change of 6.44% and 27.26% over the past three months. BZUN shares are trading 22.34% year to date (YTD), with the 12-month market performance down to -18.32% lower. It has a 12-month low price of $22.19 and touched a high of $50.63 over the same period. Currently, 0.42 million shares have been traded, compared to an average intraday trading volume of 1.33 million shares. The stock is trading above its simple moving averages at the SMA20, SMA50, and SMA200, as the current price level is off by -1.90%, 10.36%, and 17.33% respectively.

    Institutional ownership of Baozun Inc. (NASDAQ: BZUN) shares accounts for 84.20% of the company’s 58.59M shares outstanding. Mutual fund holders own 55.72%, while other institutional holders and individual stakeholders account for 64.04% and — respectively.

    It has a market capitalization of $2.57B and a beta (3y monthly) value of 2.09. The stock’s trailing 12-month PE ratio is 67.87, while the earnings-per-share (ttm) stands at $0.60. The company has a PEG of 13.48 and a Quick Ratio of 2.70 with the debt-to-equity ratio at 0.88. Price movements for the stock have been influenced by the stock’s volatility, which stands at 4.02% over the week and 4.96% over the month.

    Analysts forecast that Baozun Inc. (BZUN) will achieve an EPS of $0.23 for the current quarter, $0.22 for the next quarter and $1.8 for 2021. The lowest estimate earnings-per-share for the quarter is $0.22 while analysts give the company a high EPS estimate of $0.23. Comparatively, EPS for the current quarter was $0.2 a year ago. Earnings per share for the fiscal year are expected to increase by 4.50%, and 39.97% over the next financial year. EPS should shrink at an annualized rate of 5.04% over the next five years, compared to 25.70% over the past 5-year period.

    If you are looking to buy this stock, then you may note that the average analyst recommendation by 15 brokerage firm advisors rate Baozun Inc. (BZUN) as a “Strong Buy” at a consensus score of 1.90. Specifically, 9 Wall Street analysts polled rate the stock as a buy, while 3 of the 15 advise that investors “hold,” and 0 rated it as a “Sell.”

    Looking at the support for the BZUN, a number of firms have released research notes about the stock. Credit Suisse stated their Outperform rating for the stock in a research note on June 03, 2020, with the firm’s price target at $36. BofA/Merrill coverage for the Baozun Inc. (BZUN) stock in a research note released on March 31, 2020 offered a Neutral rating with a price target of. Credit Suisse was of a view on November 22, 2019 that the stock is Neutral, while CLSA gave the stock Outperform rating on August 22, 2019, issuing a price target of. Jefferies on their part issued Buy rating on August 05, 2019.


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