Deutsche Bank on Monday reiterated its buy recommendation on Zalando, but raised its target price from €32 to €34 in anticipation of "signs of improvement" expected when the company reports its second-quarter results on August 6.

In a research note, the analyst says he expects the German online fashion specialist to report higher second-quarter sales and operating profit (Ebit) than in the first quarter, while confirming its full-year targets.

However, he points out, its share price depreciated by 10% during the month of June due to concerns about the impact on its business of the gloomy weather at the start of summer.

For the second quarter, the intermediary nevertheless expects sales to rise by 4%, with adjusted EBIT of 170 million euros (+17% year-on-year). These solid estimates have led it to revise upwards its adjusted EBIT forecast for 2024, now expected at 430 million euros, at the top end of the range communicated by the Group (380 to 450 million euros) and above the current consensus (426 million euros).

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