Zalando Shares: Analyst Says Growth Drivers Intact as Synergies Build

Zalando (ETR: ZAL) delivered a solid set of Q4 and full-year numbers, and analysts at mwb Research say the latest update reinforces their bullish stance on the stock and its valuation.

Revenues rose 23.4 percent in Q4 to €4.07 billion, with adjusted EBIT of €262 million coming in slightly ahead of consensus.

For the full year, revenue climbed 16.8 percent to €12.3 billion and adjusted EBIT reached €591 million, at the upper end of guidance.

Analyst Alexander Zienkowicz said the performance was “strongly driven by AY,” referring to the contribution of ABOUT YOU.

Looking ahead, mwb Research highlighted management’s upbeat FY26 outlook, pointing to expected revenue growth of 12–17 percent and adjusted EBIT of €660 million to €740 million.

The firm said the group’s “growth drivers intact, synergies accelerate,” noting roughly €40 million of integration benefits expected this year and the full €100 million synergy potential now anticipated by 2028, a year earlier than planned.

The broker also emphasised the role of artificial intelligence, citing management’s view that AI is becoming a “key driver of both growth and efficiency” across marketing, logistics and product discovery.

Structural growth pillars, including the expanding partner business, rising retail media revenues, and the rollout of Zalando’s B2B operating system, support mwb Research’s case for margin expansion.

With capital efficiency improving and free cash flow expected to strengthen, the firm reiterated its Buy rating and €39 price target, implying 77 percent upside from current levels.