Zalando: Deutsche Bank cuts target price
(CercleFinance.com) - Deutsche Bank announced on Friday that it had lowered its target price for Zalando shares from E53 to E36, due to the German online fashion specialist's slower-than-expected recovery.
In a report, the broker points out that the Berlin-based group has succeeded in creating a veritable online clothing empire, with "impressive" sales now reaching E10bn a year.
However, it also acknowledges that the company is suffering from consumers' return to physical shops, a trend that is continuing later than expected.
The analyst believes that the sector is still going through a logical phase of "consolidation" following the explosion in online purchases recorded during Covid.
Deutsche Bank, which maintains its buy recommendation on the stock, nevertheless points out that Zalando is paying increased attention to its profitability, a strategy that is already beginning to bear fruit, despite the slowdown in sales.
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