Zalando SE

ZAL: XHAN (DEU)

Morningstar Rating for Stocks	Fair Value	Economic Moat	Capital Allocation
	€31.00	Bdty	Wfjxhrx

Zalando Follows Other Online Companies To a Profit Warning; Shares Still Deeply Undervalued

Jelena Sokolova

Jun 24, 2022

We do not expect to significantly alter our fair value estimate of EUR 65 for no-moat Zalando after the company reduced its outlook for gross merchandize value growth from 16% to 3%-7%, revenue growth from 12% to 0%-3% and adjusted EBIT to EUR 180 million-EUR 260 million from EUR 430 million previously targeted. While the reduction is meaningful, we don't think it changes the structural growth trajectory of the company. We see shares as undervalued, trading deep in 5-star territory, at a 65% discount to our fair value estimate.

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