Zalando: Stifel raises target price

(CercleFinance.com) - Stifel confirms its 'buy' recommendation on Zalando shares, with a target price raised from E36 to E40, highlighting improved medium-term growth visibility and an attractive FCF profile, offsetting short-term margin pressures.


The broker says it has reduced its adjusted EBIT expectations by 8% for 2025 and 5% for 2026, to take account of new measures taken by the German internet fashion retailer to strengthen engagement on its platform.

"On our revised forecasts, Zalando is trading at a 2025 EV/EBIT multiple of 12x, which seems undemanding in comparison with an average annual growth rate of around 24% in adjusted EBIT over 2023-26, he judges however.


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