Zalando posted one of the strongest gains on the DAX index on the Frankfurt Stock Exchange on Monday, buoyed by favorable comments from HSBC analysts.

In a research note, the research firm maintains its buy recommendation on the stock, while raising its price target from €27 to €33, which now indicates a potential upside of around 24%.

In its report, HSBC hails the 2023 full-year results as "at the top end" of targets, and praises the new strategic direction taken by the online ready-to-wear group, which is more focused on profitable growth.

From his point of view, the targets for 2024 also point to some pleasant surprises, especially at a time when Germany, its core market, is beginning to show some signs of improvement.

At around 12:30 pm, the Berlin-based group's share price was the fourth biggest gainer on the DAX index, with a gain of around 1.6%. It has recovered more than 25% since the beginning of the year.

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