Zalando SE (DE:ZAL) is a leading online retail platform in Europe, offering clothes, footwear, and other beauty products in 25 markets. The company serves a customer base of more than 50 million customers.
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The company’s shares began the year on a negative note, experiencing a downward trend with a decline of 17.7% in trading. The stock experienced a significant drop as the company announced its first-quarter earnings for 2023 in May. This was mainly due to subdued overall demand in a high inflationary environment.
Analysts maintain an optimistic outlook for the company’s stock and have assigned it a “Moderate Buy” rating.
Analysts Maintain Optimistic Outlook
Despite the on going challenges, the company still managed to achieve slightly increased revenue for the first quarter due to limited-time promotions and discounts offered on premium brands. The management also emphasized that the group will persist in making strategic investments, carefully choosing opportunities to capitalize on the eventual market rebound.
Analyst Benjamin Kohnke from Stifel Nicolaus also believes that investors should stay patient and ignore the short-term headwinds. He added that even though the second-quarter numbers will be low-key, the volumes will rebound towards the new year. Kohnke has a Buy rating on the stock at a price target of €40.0, predicting a growth of 38%.
Over the last 10 days, three analysts have reiterated their Buy ratings on the stock. Among them, analyst Jörg Philipp Frey at Warburg Research is the most bullish and is forecasting a growth of 90% in the share price. Seven days ago, he confirmed his Buy rating on the stock.
On the same day, Richard Edwards from Goldman Sachs also confirmed his Buy rating on the stock. His price forecast of €48 implies an upside potential of 66.5%.
What is the Stock Price Prediction for Zalando?
According to TipRanks, the ZAL stock has a Moderate Buy rating, which is based on 10 Buy, six Hold, and one Sell recommendations. The average price forecast is €38.3, implying a growth of 33.2% on the current trading levels.
