Buy Zalando Shares: forecast and target
Published: 29 June 2021 by Andrew
Investors are very debated about starting to buy Zalando shares or not, it is a fast growing brand but the share price is not cheap, so is it a good deal or not?
This is exactly what we will talk about in this guide. We will analyse all the parameters that affect the performance of the stock on the stock exchange, especially from the point of view of the fundamentals, starting from:
- The economic situation of the company
- The history of the stock
- Growth forecasts
In the guide, we will highlight everything about the company and especially the future prospects of this e-commerce giant, starting with some extremely relevant data:
|Quotation||📈 Frankfurt Stock Exchange|
|Income||💰 6,483 billions euro|
|Best Platforms||📈 eToro / ForexTB|
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Zalando Shares: live price quotation
Here we can see the real time quotation of Zalando Stock Price:
Zalando: the Company
Zalando is a young company, which was founded in 2008 in Berlin, Germany, but its organization quickly led it to conquer a large part of Europe.
Founders Robert Gentz and David Schneider start with a small company that only sells shoes, but given the success they have achieved, they expand their offer to the entire clothing and accessories sector.
Already the year after its foundation, the small Berlin company went to conquer Austria, the following year it moved on to the Netherlands and France. After that this expansion develops very quickly.
Together with the e-commerce offer, the company implements a very effective marketing campaign and the brand immediately becomes popular.
In 2015 Zalando opens its first distribution center outside of Germany.
The stock exchange listing came in 2014 with a high-impact takeover bid and since that moment the stock has seen a decidedly constant and progressive growth as we can see in the graph below:
The share price, which has shown a clear bullish trend since its inception, undergoes a surge in 2020, after the collapse due to the global pandemic.
The strategies implemented by this company are effective, the organization is “German” and everything works as it should. In 2020 Zalando opens a second distribution center in Europe, which is one of the best German e-commerce markets.
How to Buy Zalando Shares
To buy Zalando shares you first need an online broker, possibly without commissions, such as CFD brokers, so as to negotiate the stock without expensive extra costs.
If you make long-term investments and you are a so-called “drawer” then traditional brokers are fine too, but you will have to open a stock account and pay the commissions for each operation performed.
If, on the other hand, you like short-term online trading and are looking for frequent profits, CFD brokers are the ideal choice.
They are practical, easy to use and very inexpensive. These brokers offer so-called Contracts for Difference, derivatives that allow you to speculate on the share price without paying trading fees.
Let’s see what advantages CFD brokers offer:
- Demo account to practice
- No trading fees
- Possibility of making even small investments
- Very intuitive trading platforms
- Possibility to also earn when the price drops
Where to buy Zalando Shares
When choosing an online broker you have to pay close attention to security, it is the first factor to consider.
The intermediaries proposed in this guide are all regulated, therefore safe and reliable, in possession of at least one license issued by an entity such as CONSOB or CySEC.
You don’t have to trust unlicensed brokers, they often hide real scams.
Here are the CFD Brokers best suited to buy Zalando shares, take a look at the descriptions we have included and choose according to your trading style:
eToro is one of the most famous brokers in the world, with over 19 million subscribers to its platform, who trade securely on a wide range of stocks and assets.
The reliability of the Broker is of the highest level and can count on numerous international licenses, including CONSOB and CySec.
The trading platform is considered among the most intuitive on the market, here it is below with the Zalando CFD ready to be traded:
How do you buy Zalando shares with eToro?
- Register for free on eToro
- Log into your Demo or real account (by depositing at least € 200)
- Select the Zalando stock and click on “Trade”
- Decide whether to buy or sell the shares and how much to put in the operation
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ForexTB is a very innovative online broker that offers a number of high-level services, which have helped make it so popular throughout Europe.
It operates under the supervision of CySEC, so security is confirmed. Among the services offered, the Trading Course is probably the most successful.
It is an ebook that lays the foundations of online trading in a very practical way, with clear examples and well-understood language.
In addition, the course is totally free, here is the link to download it:Click here and download the Trading Course for free
ForexTB offers two trading platforms, very different but both free and reliable:
- Metatrader is a complete platform full of indicators of all kinds.
- The Web Platform is simple, intuitive, fast and accessible from any device, without installing anything.
To buy Zalando shares on ForexTB you have to follow these 4 steps:
- Register on ForexTB
- Choose the trading platform
- Select the Zalando stock and click on Buy (or on Sell to sell short)
- Decide the amount to invest.
Zalando Business Model
Zalando has an extensive logistics network and the strength of its business model is the organization that allows it to manage shipments and returns throughout Europe.
It has beaten the competition by offering free shipping and returns and recently also allows you to try on clothes at home and pay only for those that fit, while the rest can be returned, again without any extra expense.
In Germany Zalando also has physical stores, while it operates through its e-commerce in France, Germany, Ireland, Italy, Luxembourg, Netherlands, Austria, Belgium, Czech Republic, Denmark, Finland, Norway, Poland, Spain, Sweden, Switzerland and the United Kingdom.
Here are some financial and corporate data of Zalando:
- Sector: E-commerce
- Founded: October 2008
- Founders: Robert Gentz, David Schneider
- Headquarters: Berlin, Germany
- CEO: Robert Gentz, David Schneider and Rubin Ritter
- Number of employees 13,763 (2019)
- Turnover: € 6.483 billion (2019)
- Net profit: € 99.7 million (2019)
Zalando ISIN code is: DE000ZAL1111.
Buy Zalando Shares: forums
On the online trading forums there is a lot of talk about Zalando, it is a rapidly rising stock that is making new all-time highs and the interest of investors is quite high.
But pay attention to the information you find in the trading forum, they are not reliable places and there are also real scammers hidden inside, so we recommend caution.
If you are looking for a comparison with other traders, possibly experts and who do not give random or totally incorrect information, we recommend the Social Trading eToro. It is like a forum but they are all traders with verifiable results, and the platform is that of the famous and reliable online broker.
Among the competitors of Zalando we must report a novelty, in fact there is a brand that belongs to the giant LVHM, which could be classified among the competitors of the German group but in reality we mention it for a recent agreement.
Zalando has entered into an agreement with Sephora, the beauty products brand owned by LVHM, and will start selling them shortly on its e-commerce.
This agreement starts in Germany, while the rest of Europe will have to wait until next year to purchase Sephora products on the Zalando site.
Below we have included some of the main competitors of the German company:
Is it worth to buy Zalando shares?
Here we are at the gist of the matter, that is the crucial question that traders ask themselves: Is it worth buying Zalando shares?
The quick answer is YES.
Analysts and market experts are quite optimistic about the future of this German company and believe that it is a classic example of Value Investing.
Its success is due to the fact that it offers an extremely functional platform, available to small and large clothing manufacturers, who can exploit its characteristics and its diffusion to sell their products throughout Europe.
The agreement with Sephora will also contribute to this growth, it is a brand with over 2000 physical stores and its brand is an excellence in the sector.
The only thing to pay attention to is the duration of the investment. Better to trade short-term and settle for frequent small profits, rather than hoping for a big profit after months or years.
The spread of Zalando has led it to become the largest clothing e-commerce in Europe and the growth in turnover and profits is truly impressive.
Also in the first quarter of this year, Zalando’s financial data show growth of 47% year on year, a percentage that leaves little room for doubt.
Below we have included some of the forecasts (on Zalando) made by the world’s major investment banks and their analysts:
- Hauck & Aufhaeuser have assigned a price target of € 110.00 ($ 129.41) and a “buy” rating on the stock.
- Independent Research has set a target price of € 112.00 ($ 131.76) on Zalando’s shares and assigned the company a “buy” rating.
- Royal Bank of Canada has set a target price of € 121.00 ($ 142.35) on the shares of Zalando and assigned the company a “buy” rating.
- Barclays has set a target price of € 113.00 ($ 132.94) on the shares of Zalando and assigned the company a “buy” rating.
- Credit Suisse Group has set a price target of € 100.00 ($ 117.65) on the shares of Zalando and assigned the company a “buy” rating.
- Morgan Stanley has set a price target of € 96.00 ($ 112.94) on the shares of Zalando and assigned the company a “neutral” rating.
Buy Zalando Shares: Target Price
The 12-month average target price on Zalando shares is € 102.72.
This target comes from the estimates of 18 international analysts who have issued ratings and price targets for Zalando in recent months.
The high price target for ZAL is € 130.00 and the low price target is € 96.00. There are currently 6 maintenance ratings and 12 buy ratings for the stock, confirming the bullish target.
Zalando is a fast growing company and the stock market has been rising for several months.
At the moment it is making constant historical highs so we need caution, we are in uncharted territory, better to make small short-term transactions and not expose yourself with large investments.
The CFD Brokers we have proposed are perfect for short-term online trading, they are reliable and commission-free, and they also offer a Demo account where you can practice without taking risks.
Here are the links to register for free to the Demo accounts offered by the main CFD Brokers:
- Access the eToro Demo account for free by clicking here
- Register on ForexTB and try the Demo account by clicking here
Analysts are mainly bullish on the stock but caution is needed, it is making new historical highs constant.
Zalando’s ISIN code is DE000ZAL1111.
The 12-month average target price on Zalando shares is € 102.72.
On CFD brokers like eToro, they are safe, reliable and do not charge trading fees.