Zalando’s July crash was prompted by a combination of changes in the e-commerce market. In the middle of the month, Amazon launched “Prime Wardrobe,” a program that lets shoppers try on clothing they’ve ordered before they pay. On the day of Amazon’s launch, Zalando’s sales fell short of expectations and the company’s share prices plummeted. Now, prices are at €38.56—down from €45.48 in June. Analysts are divided over whether the Berlin retailer’s tumultuous last month means that the company is overvalued—or, alternatively, if the decline could be a chance for new investors.
Richard Chamberlain and five other analysts recommended Zalando shareholders sell; Mr. Chamberlain’s firm RBC Capital recently lowered Zalando’s stock price target from €38 to €35, but did not alter its status as underperforming. Mr. Chamberlain says Amazon is to blame for Zalando’s plummet. Other analysts also adjusted their expectations. Christian Salis of the private bank Hauck & Aufhäuser lowered Zalando’s price target from €50 to €48. But he said that Zalando’s success story has not come to an end, arguing that the company’s recent price consolidation will only attract more buyers.