Zalando: UBS upgrades to buy
(CercleFinance.com) - UBS has upgraded its recommendation on Zalando from Neutral to Buy, with a target price of E40 (up from E28) following the announcement of 2024 numbers.
This new TP represents 37% upside potential for this online clothing and footwear retail group's share.
Zalando being potentially at the beginning of an upgrade cycle with significant value creation potential, moves us to Buy, UBS says.
Zalando exceeds its own profitability targets for FY 2024 after a better-than-expected Q4. Adjusted EBIT is expected to reach around E510m, above the company's current guidance of 10 October 2024 (E440m-E480m).
Gross merchandise volume (GMV) in fiscal 2024 increased by 4.5% y-o-y to E15.3bn, and sales rose by 3.9% y-o-y to E10.5bn.
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