Zalando: Invest Securities downgrades 'buy' rating
(CercleFinance.com) - Invest Securities has downgraded its "buy" rating on the share of German online clothing retailer Zalando, now adopting a "neutral" stance, as it has exceeded its target price of 61 euros (share is currently trading at just over 65 euros), following its 22% rise (+8 points in relative terms) since the broker began to monitor the share on 18 May.
While it remains convinced of the quality of its business model and consumers turning towards online sales in the post-Covid-19 context, the analyst believes that at the share's current price, the development of its partner program seems to be fairly priced.
The broker also points out that the German clothing retailer's stock has historically been highly volatile, a volatility that should provide buy opportunities at a later date.
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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.
While it remains convinced of the quality of its business model and consumers turning towards online sales in the post-Covid-19 context, the analyst believes that at the share's current price, the development of its partner program seems to be fairly priced.
The broker also points out that the German clothing retailer's stock has historically been highly volatile, a volatility that should provide buy opportunities at a later date.
Copyright (c) 2020 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.