Baader Helvea names co next Zalando, shares jump
03/12/2020 07:21
** Baader Helvea initiates the online fashion retailer
Global Fashion Group GFG.DE with "buy", calling it the next
Zalando ZALG.DE
** The shares are up nearly 5% in early Frankfurt trade and
seen at the top of the German small-cap index .SDAXI
** The broker says Global Fashion Group's model is proven,
expects the company to break even on adj. EBITDA in FY 2020, and
to generate positive free cash flow in FY 2024
** It adds that group's net cash position above EUR 300 mln
($363.5 mln) at end of 2020 should cover the cumulated negative
FCF until FY 2023
** Badeer Helvea says "GFG's business is just starting to
scale", pointing to the group's margin potential based on an
increased marketplace business share, highly attractive service
offers and favourable valuation
** The target price at EUR 11 implies about 31% upside to
Wednesday's closing price; shares are up 262% YTD
** Among the 5 analysts that cover the stock, all five have
"strong buy" or "buy" rating
($1 = 0.8254 euros)
((elizaveta.gladun@thomsonreuters.com))