FRANKFURT (dpa-AFX) - A buy recommendation from Metzler bank supported the recovery in Zalando shares on Tuesday morning. The shares of the online fashion retailer gained 2.6 percent to 19.85 euros compared to the Xetra close on the Tradegate trading platform. Metzler analyst Felix Jonathan Dennl sees medium-term upside to his price target of 26 euros and therefore gave the shares a "buy" rating. According to traders, good business figures from fashion group Urban Outfitters will also have a positive effect on Tuesday.

With price gains on Xetra, Zalando shares would build on the previous day's recovery. They had ultimately gained 1.5 percent after falling to their lowest level since fall 2014 at 18.25 euros in the morning. One reason for the price recovery on Monday: optimistic statements from members of the US Federal Reserve on the development of inflation in the USA. This raised hopes that key interest rates would be cut soon.

With the recent price slide, Zalando had initially moved closer to the record low of just over 17 euros, which also dates back to fall 2014 and was reached shortly after the IPO. The issue price at the time was 21.50 euros.

In the still young Borsen year 2024, the Zalando share price losses - excluding the recovery expected for Tuesday - still add up to almost ten percent, which means last place in the Dax.

In 2023, the shares were already at the bottom of the leading German index with an annual loss of a good 35 percent; in 2022, they were penultimate with a loss of more than half. The record of almost EUR 106 from mid-2021 is a long way off. At that time - in the middle of the coronavirus pandemic - online retail was booming.

In the bleak economic environment, investors are concerned about the business development of the DAX-listed company. Just last Thursday, a profit warning from British sports and leisure fashion retailer JD Sports Fashion further dampened industry sentiment.

On Monday, analyst Richard Chamberlain from the Canadian bank RBC also referred to increased freight rates due to the problems in the Red Sea and the passage through the Suez Canal. However, he wrote that they are a manageable burden for European fashion retailers, as freight rates come from a low level and make up a comparatively small proportion of costs. With a target price of 44 euros and an "outperform" rating, he remained optimistic for Zalando./mis/ajx/stk