Review
The online mail order company Zalando is currently struggling with falling growth expectations and declining sales.
After showing itself to be a winner in the pandemic, the company is now likely to face a very problematic time for the online retailer. Rising inflation and the threat of recession with its consequences, combined with the energy crisis, especially in Germany, and supply bottlenecks,
could put an end to the European population’s propensity to consume and cause massive difficulties for the company.
Also, the share price has fallen nearly 80% since almost a year ago and there is still no recovery in sight from a chart perspective.
Current
At the moment, the share price is hovering around €25.00. Unless a recovery sets in soon, which I do not expect due to the current situation, my price target for a continued price decline is around €10.00. Otherwise, I expect a rise and test of the downtrendline at €29.00. If this is breached, the share price could continue to recover in the direction of €35.00.
Jonas Wuttig
