Baader Helvea ups Zalando on improved outlook, About You merger potential

ABOUT YOU Holding SE

19/08/2025 07:43

** Baader Helvea raises Zalando ZALG.DE to "buy" from "add" over an improved outlook after the company's hike to annual EBIT guidance and group's merger potentials

** The broker expects the integration of newly acquired About You YOUG.DE to potentially boost Zalando shares

** It expects the entity, resulting from the merger of the two biggest online fashion retailers in Germany, to have a "great" market position

** A wider customer base, more cross-selling opportunities, and increased leverage over suppliers and marketing channels should help stronger gross merchandise value growth, the broker says

** It adds that About You's highly profitable platform business is a good fit to Zalando's ZEOS, which offers its platform and logistics network as a service to other retailers and brands

** Zalando shares are down 28% from the beginning of the year, as concerns around earnings dilution from the acquisition of About You and muted consumed demand have so far weighed on the stock, the broker says

** Out of 28 analysts that cover Zalando SE, 20 rate the stock "strong buy" or "buy," ​six rate "hold" and two​ rate the stock "strong sell" or "sell" - LSEG data

 (Reporting by Linda Pasquini)

 ((Linda.pasquini@thomsonreuters.com))