Analysts See Opportunities for Zalando
Analysts are optimistic about the future price developments of Zalando’s stock. A price potential of over 50% is projected. This positive forecast is primarily based on two key factors. Firstly, an improvement in the consumer climate is expected, which should benefit demand in the online fashion retail sector. Secondly, the intense discount battles that have recently strained margins are expected to come to an end, which could significantly enhance the company’s profitability.
Strategic Acquisitions Drive Growth
Another support for the growth potential comes from strategic moves such as the acquisition of the competitor About You, which was recently approved by the EU Commission. This acquisition positions Zalando for a stronger market position in the European online fashion and lifestyle market. Expectations for revenue growth and the increase in gross merchandise volume are estimated at five to ten percent annually. This could bring Zalando closer to the double-digit growth rates that have characterized the company in the past.
Overall, it is expected that Zalando will be traded with strong price potential despite a challenging market environment. The expectation of an improved market environment and the recent expansion strengthen confidence in the company’s future prospects.