ZLDSF - Zalando: Buy If It Dips Hold For Now

• Zalando is a leading online fashion retailer in Europe. Established in 2008 in Germany, Zalando grew quickly to become one of the first address for online fashion shoppers.
• Zalando has enjoyed super-charged growth rates in the past. From 2018 to 2021, the company grew revenues from 5.39 billion to 10.35 billion, representing a 3-year CAGR of 25%.
• Going forward: Zalando hopes to achieve revenues of €30 billion by 2025, which accounts for approximately 7% of the European fashion market.
• To buy into the Zalando equity story, however, investor’s are required to pay for some speculation - or in other words, pay a premium to fair implied market-price.
• My calculation returns a fair base-case price target of €30.25/share. Although the stock is slightly overvalued from a purely financial analysis, I assign a HOLD recommendation.

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