Jefferies starts Zalando at 'buy' on operational expertise, M&A potential

Zalando SE

30/06/2025 08:39

** Jefferies initiates coverage of German online retailer Zalando ZALG.DE at "buy" citing potential for margin expansion through increased fulfilment capacity utilisation and M&A-led growth

** The stock is up around 2.5% at 0739 GMT

** It says the company's capacity is driven by its platform with its operational expertise in the fragmented European retail market making it a "compelling" partner for brands seeking to grow in Europe

** The brokerage adds that Zalando has the potential to become a consolidator of European online clothing retail businesses via M&A, noting other market players have few opportunities for fundraising

** Jefferies forecasts a 25% earnings-per-share compound annual growth rate for Zalando between 2024 and 2028

** Out of 29 analysts that cover Zalando, 22 rate the stock "strong buy" or "buy," ​five rate it "hold" and two​ rate the stock "strong sell" or "sell" - LSEG data

 (Reporting by Cian Muenster)

 ((Cian.muenster@thomsonreuters.com))