Stifel Nicolaus analyst Benjamin Kohnke maintained a Buy rating on Zalando (0QXN – Research Report) today and set a price target of €43.00.
Benjamin Kohnke has given his Buy rating due to a combination of factors that indicate a positive outlook for Zalando. The analyst has raised the price target to €43.00, reflecting increased confidence in the company’s medium-term goals and its potential to benefit from a recovery in European consumer spending. Kohnke anticipates Zalando will report solid first-quarter results, driven by an increase in online shopping penetration in the fashion sector and the company’s growing market share.
Furthermore, the expected expansion of the adjusted EBIT margin by approximately 80 basis points to 2.1% in the first quarter suggests improved profitability, even in a typically weaker quarter. The company’s strong balance sheet, with substantial cash reserves, supports this optimistic view. Despite mixed signals from the broader market, Kohnke believes Zalando’s initiatives in enhancing customer engagement and loyalty, along with its strategic partnerships, will continue to drive revenue and profitability growth, reinforcing the Buy recommendation.