Zalando: price target raised at Stifel

(CercleFinance.com) - Stifel reaffirms its 'buy' recommendation on Zalando, with a price target raised from €36 to €40, 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 on an EV/EBIT 2025 ratio of 12 times, which seems undemanding in comparison with an average annual growth rate of around 24% in adjusted EBIT over the 2023-26 period", he judges however.

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