(News Bulletin 247) – Deutsche Bank announced on Friday that it had lowered its price target on Zalando, reduced from 53 to 36 euros, due to the slower-than-expected recovery of the German online fashion specialist business.
In a research note, the financial intermediary points out that the Berlin group has succeeded in creating a veritable clothing empire on the Internet, with an “impressive” turnover which now reaches 10 billion euros per year.
But he also acknowledges that the company is suffering from the return of consumers to physical stores, a trend that is continuing later than expected.
From the analyst’s point of view, the sector is still going through a logical phase of ‘consolidation’ following the explosion of online shopping recorded during the Covid.
Deutsche Bank, which maintains its buy recommendation on the title, stresses, however, that Zalando pays increased attention to its profitability, a strategy which is already beginning to bear fruit despite the decline in turnover.
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