Metzler analyst sees potential: Buy recommendation does not support the recovery of Zalando shares

Metzler analyst sees potential: Buy recommendation does not support the recovery of Zalando shares

According to a report from finanzen.net, a buy recommendation from Bankhaus Metzler cannot support the initial recovery attempt of Zalando shares. The online fashion retailer's shares temporarily lost 0.65 percent to 19.22 euros. Metzler analyst Felix Jonathan Dennl sees room for his price target of 26 euros in the medium term and has therefore given the shares a “buy” rating. Despite this buy recommendation and additional positive business figures from the fashion group Urban Outfitters, Zalando shares cannot hold on to their attempt to recover.

In combination with the price gains, Zalando shares are continuing the previous day's recovery. On Monday they ultimately gained 1.5 percent after slipping to their lowest level since autumn 2014 in the morning. This price recovery on Monday was followed by optimistic statements from members of the US Federal Reserve about inflation developments in the USA, which increased hopes of imminent key interest rate cuts.

Despite these attempts at recovery, Zalando's price losses in the still young stock market year of 2024 have totaled almost ten percent, which means it is in last place in the DAX. The securities had already been represented in the DAX with significant losses in previous years.

Current developments could indicate that investor confidence in Zalando is waning. The profit warning from British sports and leisure fashion retailer JD Sports Fashion as well as increased freight rates could raise additional concerns about Zalando's business performance.

It remains to be seen how Zalando's share prices will react to this tense situation in the coming weeks and months. Analysts and investors will be watching closely to see whether the company is able to regain investor confidence and post positive developments again.