Zalando: share recovers, as HSBC raises TP

(CercleFinance.com) - Zalando shares have posted one of the strongest gains on the DAX index on the Frankfurt Stock Exchange on Monday, buoyed by favourable comments from HSBC analysts.


The broker maintains its buy recommendation on the stock, while raising its target price for it from E27 to E33, which now suggests around 24% upside potential.

In its report, HSBC hails the 2023 full-year results as "at the top end" of targets, and praises the new strategic direction taken by the online ready-to-wear group, which is more focused on profitable growth.

It believes that the targets for 2024 also suggest some pleasant surprises, especially at a time when Germany, its core market, is beginning to show some signs of picking up.

At lunchtime, the Berlin-based group's share price was the fourth biggest winner on the DAX index, up around 1.6%. It has recovered over 25% YTD.


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