Vipshop Holdings rallies on Goldman Sachs 'buy' recommendation

Chinese retail giant Vipshop Holdings Ltd. (VIPS) rallied to a one-week high

after Goldman Sachs Group Inc. upped their recommendation on the stock to 'buy'.

In a note issued Monday, Goldman Sachs analysts led by Weibo Hu highlighted that the retailer's share of the Chinese apparel market is expected to grow to 1.5 percent in 2016 from 1 percent this year, translating into revenue of 6 billion dollars in 2016.

"Vipshop's growing credibility as a leader in discount retail in China will allow it to introduce more global brands, thereby attracting more customers, creating a virtuous cycle," the analysts said in a note. "We expect the company to seek expansion into further product categories, such as maternal and baby products, they added."

According to data accessed by Bloomberg, American depositary shares of Vipshop climbed 8.2 percent to 149.30 dollars in New York, extending the company's surge this year to 78 percent.

Vipshop has climbed 23-fold since its US debut in March 2012. The Bloomberg China-US Equity Index of the most-traded Chinese stocks in the US advanced 0.4 percent to 99.12.