SRH AlsterResearch AG Initiation: Zalando SE - Higher ambitions until 2025E, Initiate with BUY

Zalando SE (Initiation) Retail MCap EUR 22.7bn BUY, PT EUR 100.00 (upside 10%) Zalando_update Zalando delivered a strong final quarter. The Group benefited from the pandemic situation in Europe, which is causing the structural shift in consumer demand from offline to online to proceed at a faster pace. The strong development of the partner program indicated that an EBIT margin level of 10% to 13% is possible in the long term. For the time being, Zalando continues to focus on expansion, not only in terms of product categories (including second-hand, luxury fashion) and partners, but also into additional foreign markets. Against this backdrop, the group is planning higher investments and is only holding out the prospect of an EBIT margin in the low to midsingle-digit percentage range. The company is clearly focused on growth, which, however, prevents the visibility of profitability in the medium term. We start our coverage with a price target of EUR 100.00 and a BUY recommendation. For 5 current investment ideas, check our Weekly Screener Please note that AlsterResearch publishes MiFID II compliant research only. For a detailed discussion on MiFID II, please visit https://www.research-hub.de