Zalando: Analyst sceptical of rising share price

After significant price losses since mid-February, Zalando shares could initially find a base on Wednesday.

On the Tradegate trading platform, they rose 4 percent to 26.30 euros compared to the Xetra close. They had previously fallen by almost 40 percent since mid-February. They recently reached a low of just under 25 euros, a level not seen since September of the previous year.

Following a strong second quarter, the online retailer Zalando has factored in the acquisition of About You into its outlook. After the transaction's completion in mid-July, revenue of 12.1 to 12.4 billion euros and adjusted EBITDA of 550 to 600 million euros are expected for 2025. Zalando can rely on strong performance in the first half of the year. Further efficiency gains in costs and initial synergies are expected in the second half of the year.

Analyst Georgina Johanan of JPMorgan noted that management is confident of being able to increase gross merchandise value in the mid-single-digit percentage range in the third quarter. This suggests online trading is performing better than previously expected.

However, Johanan called the recent profitability trend disappointing. "The share price could struggle to end the day significantly higher," was her price forecast.

This article was translated to English using an AI tool.

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