Zalando SE’s growing use of AI tools and the integration of ABOUT YOU could support further upside in ZAL shares.
Xetra ticker: ZAL
Current price: €25.66
Target price: €29.50
Upside potential: 14.96%
Zalando shares have nearly 15% upside to the €29.50 target price, supported by stronger quarterly results, the expanding use of AI, and the integration of ABOUT YOU. The company reported higher revenue and adjusted EBIT in the first quarter, while management reaffirmed its 2026 guidance and highlighted AI-driven improvements in customer engagement and operational efficiency.
Reasons to Buy
Quarterly revenue growth amid the rollout of AI tools and the integration of ABOUT YOU. In its first-quarter report, Zalando recorded revenue growth, expanded its AI capabilities, and made progress on the integration of ABOUT YOU. In the first quarter, reported GMV increased by almost 22% year over year, while reported revenue rose by 24%. Adjusted EBIT grew by 39% to €65 million, with a margin of 2.2%. On a pro-forma basis, GMV amounted to €4.3 billion, up 6%, while revenue reached €3 billion, up 3.4%.
Management reaffirmed its 2026 guidance, noting that AI is improving both customer engagement and operational efficiency. Around 10 million marketplace visitors used the company’s AI assistant during the quarter, compared with 6 million in all of 2025. Warehouse robots autonomously process around 2 million items per month, while computer-vision tools process approximately 6,000 product images per day. Around 85% of these images are uploaded to the platform within three days.
Recommendations from leading investment banks. Twenty-six investment banks currently cover Zalando, 20 of which rate the stock “Buy.” These include Deutsche Bank and BNP Paribas, each with a target price of €35; UBS, with a target price of €36.50; and Citi, with a target price of €42. The remaining six banks rate the stock “Hold.” The average target price is €35.
Technical outlook. ZAL shares have broken above the downtrend that began in February 2025. After testing resistance at €27, the shares pulled back. A sustained break above this level could pave the way for a move toward €29.50.
Bottom line: The expanded use of AI tools and the integration of ABOUT YOU underpin the upside case for ZAL shares.
Tags - #Freedom Holding #Freedom Broker #Zalando, ZAL, E-commerce, Fashion Retail, AI, About You, GMV, Revenue Growth, Adjusted EBIT, German Stocks, Investment Idea
Xetra ticker: ZAL
Current price: €25.66
Target price: €29.50
Upside potential: 14.96%
Zalando shares have nearly 15% upside to the €29.50 target price, supported by stronger quarterly results, the expanding use of AI, and the integration of ABOUT YOU. The company reported higher revenue and adjusted EBIT in the first quarter, while management reaffirmed its 2026 guidance and highlighted AI-driven improvements in customer engagement and operational efficiency.
Reasons to Buy
Quarterly revenue growth amid the rollout of AI tools and the integration of ABOUT YOU. In its first-quarter report, Zalando recorded revenue growth, expanded its AI capabilities, and made progress on the integration of ABOUT YOU. In the first quarter, reported GMV increased by almost 22% year over year, while reported revenue rose by 24%. Adjusted EBIT grew by 39% to €65 million, with a margin of 2.2%. On a pro-forma basis, GMV amounted to €4.3 billion, up 6%, while revenue reached €3 billion, up 3.4%.
Management reaffirmed its 2026 guidance, noting that AI is improving both customer engagement and operational efficiency. Around 10 million marketplace visitors used the company’s AI assistant during the quarter, compared with 6 million in all of 2025. Warehouse robots autonomously process around 2 million items per month, while computer-vision tools process approximately 6,000 product images per day. Around 85% of these images are uploaded to the platform within three days.
Recommendations from leading investment banks. Twenty-six investment banks currently cover Zalando, 20 of which rate the stock “Buy.” These include Deutsche Bank and BNP Paribas, each with a target price of €35; UBS, with a target price of €36.50; and Citi, with a target price of €42. The remaining six banks rate the stock “Hold.” The average target price is €35.
Technical outlook. ZAL shares have broken above the downtrend that began in February 2025. After testing resistance at €27, the shares pulled back. A sustained break above this level could pave the way for a move toward €29.50.
Bottom line: The expanded use of AI tools and the integration of ABOUT YOU underpin the upside case for ZAL shares.
Tags - #Freedom Holding #Freedom Broker #Zalando, ZAL, E-commerce, Fashion Retail, AI, About You, GMV, Revenue Growth, Adjusted EBIT, German Stocks, Investment Idea
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คำจำกัดสิทธิ์ความรับผิดชอบ
ข้อมูลและบทความไม่ได้มีวัตถุประสงค์เพื่อก่อให้เกิดกิจกรรมทางการเงิน, การลงทุน, การซื้อขาย, ข้อเสนอแนะ หรือคำแนะนำประเภทอื่น ๆ ที่ให้หรือรับรองโดย TradingView อ่านเพิ่มเติมใน ข้อกำหนดการใช้งาน