Zalando: Credit Suisse upgrades stock

(CercleFinance.com) - Credit Suisse has upgrade its rating on Zalando shares to "outperform," with a target price of 100 euros, in coments on the clothing retail sector, where it reiterates its preference for single-channel models over multi-channel ones.


"Online retailers have de-rated YTD by between 10% (Asos) and 21% (Boohoo) and 24% (Zalando) and trade on historically attractive current year multiples and discount reasonable terminal margins," the broker said.

While Asos remains its top pick, Credit Suisse is upgrading its rating on Zalando shares "on valuation grounds, in anticipation of upside to guidance and as the Kinnevik overhang is absorbed, with the shares commencing trading in Stockholm today".


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