Zalando: RBC Capital Markets downgrades to 'underperform'.
(CercleFinance.com) - RBC Capital Markets has cut its rating on Zalando from "sector perform" to "underperform," with a new target price of 38 euros from 42 euros.
The Canadian investment bank thinks the fundamental outlook and competitive environment is at odds with the retailer's strong share price performance year to date (+15%).
In particular the brokerage firm cites the threat from "more competition in European online fashion."
"Valuation looks full to us given margin risk," RBC wrote in a research note sent to clients.
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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 Canadian investment bank thinks the fundamental outlook and competitive environment is at odds with the retailer's strong share price performance year to date (+15%).
In particular the brokerage firm cites the threat from "more competition in European online fashion."
"Valuation looks full to us given margin risk," RBC wrote in a research note sent to clients.
Copyright (c) 2017 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.