UBS has upgraded Zalando SE's stock rating from Neutral to Buy, raising the price target to EUR40.00 from EUR28.00, following strong revenue performance and GMV upgrades. The company is expected to see continued profitability growth, with adjusted EBIT for fiscal year 2024 projected to exceed guidance, driven by a 6.6% GMV CAGR and improved retail margins. Despite a 69.37% return over the past year, analysts believe there is further upside potential, supported by a healthy financial position and anticipated net income growth.