Zalando SE
ZAL: XHAN (DEU)
Morningstar Rating for Stocks | Fair Value | Economic Moat | Capital Allocation |
---|---|---|---|
€96.00 | Qnybb | Cnmpjmgh |
Zalando Earnings: Weak Demand Trends Persist As Company Focuses on Cost Efficiencies
We expect to reduce our fair value estimate for no-moat Zalando by a mid- to high-single-digit percentage to account for lower growth in 2023 and after continued weakness in quarterly sales figures. We still see shares as materially undervalued at current levels as we expect the online apparel industry to return to high-single-digit growth and Zalando to return to low-teens growth.