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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The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.
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.
Copyright (c) 2024 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.