Freedom recommends buying Zalando shares with upside potential of about 15%

Freedom analysts recommend buying shares of German online retailer Zalando SE (ZAL), setting a target price of 29.5 euros per share. At the current price of 25.66 euros, the upside potential is estimated at 14.95%.

What you need to know about Zalando

Zalando is Europe’s largest online platform for selling clothing, footwear, and accessories. The company operates in more than 20 European countries and partners with thousands of global brands.

In recent years, Zalando has been actively investing in business automation and artificial intelligence technologies, seeking to improve platform efficiency and enhance the user experience.

Artificial intelligence helps drive sales growth

Analysts cite the rollout of AI tools and the integration of the About You online platform as among the key growth drivers.

For the first quarter, Zalando’s revenue increased by 24%, and adjusted EBIT rose by 39% to 65 million euros. The company’s sales volume grew by 6% to 4.3 billion euros, while total revenue reached 3 billion euros, representing a 3.4% year-on-year increase.

The company’s management expects further expansion of AI usage. Zalando believes new technologies can increase user engagement and improve the effectiveness of marketing campaigns.

Robots are already working in Zalando warehouses

The company is actively using automation in logistics. Zalando’s robotic warehouses independently process about 2 million items per month, and computer vision systems analyze about 6,000 product images, around 85% of which are published on the platform within three days.

According to analysts, process automation will allow the company to reduce operating costs and improve business profitability in the coming years.

Most analysts recommend buying the stock

At present, Zalando shares are covered by 26 investment banks, 20 of which recommend buying the company’s stock.

The highest target prices were set by:

• Citi — 42 euros;
• UBS — 36.5 euros;
• Deutsche Bank and BNP Paribas — 35 euros.

The average market target price is about 35 euros per share, which is significantly above current quotes.

Shares continue to strengthen

Zalando shares managed to break the downtrend that had been in place since February 2025. After testing resistance around 27 euros, the quotes corrected; however, analysts believe that if the price successfully holds above this level, the shares may continue rising toward the target price of 29.5 euros.

What is happening in the artificial intelligence market

Investor interest in companies linked to artificial intelligence continues to grow as new commercial products and services emerge. Recently, OpenAI introduced the ChatGPT Work platform, which makes it possible to automate the preparation of documents, presentations, reports, and other workflows, effectively turning AI from a communication tool into a full-fledged digital business assistant.

At the same time, OpenAI continues to raise capital for the further development of its technologies. Earlier, the company was preparing an offer to repurchase shares from employees and investors at a valuation of about $687 billion, once again confirming the market’s strong interest in AI developers and expectations of further growth in the sector. For companies that actively внедряющих ИИ in their products and business processes, this creates additional opportunities to improve efficiency and accelerate revenue growth.

This is not an individual investment recommendation.