The share price of German online retailer Zalando (ZAL) fell just under 2% Monday after the stock was downgraded by analysts at HSBC.
The European online platform for fashion and lifestyle products was cut to Hold from Buy, with the firm’s analyst Paul Rossington cutting the price target to EUR 26, down from EUR 45.
The downgrade and subsequent share price decline means Zalando shares are now down more than 22% in 2023, although it is up around 3% in the last 12 months.
The HSBC analyst told investors in a note that his firm now expects a slower gross merchandise recovery in 2024 for Zalando.
In addition, the investment bank believes there is a lack of near-term catalysts for the shares.
Our View: While Zalando is not a stock we cover or watch extensively, a quick look at Google Trends shows searches for the company are down 4% in the past year.
By Sam Boughedda