CA - Allegro Stock May Be A Great Polish E-Commerce Pick For Your Portfolio

2024-05-21 08:00:00 ET

Summary

• Allegro.eu SA is a strong e-commerce company in Poland with potential for expansion in neighboring regions.
• The company's Q4 2023 results showed growth in active buyers, GMV, and consolidated sales.
• Allegro aims to transform its struggling Mall segment and launch international marketplaces to accelerate growth.
• Allegro's GMV, revenue, and EBITDA are growing, and with net income recovering in 2023, this positive trend should boost its stock in the medium term.
• In my opinion, Allegro is an excellent stock pick on the Polish stock market for those who have been looking at emerging markets (especially Central and Eastern Europe) for a long time.

My Thesis And Reasoning

The last and only time I covered Allegro.eu SA ( ALEGF ) was in May 2022 - at the time I thought that Allegro should become a great alternative to Russian Ozon (for EM capital allocators at least). Since then, the stock has risen 20% as a pink sheet (US traded), but almost 70% on the Warsaw Stock Exchange, the main venue I recommended in my article, as Allegro has the most liquidity there....

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