NuWays AG Recommends BUY for Global Fashion Group S.A.

NuWays AG has initiated coverage on Global Fashion Group S.A. (GFG) with a BUY recommendation. The target price is set at EUR 0.80, with a 12-month outlook. GFG is positioned to capitalize on growth in emerging markets driven by a tech-savvy population and increasing online penetration.

Operating as a global fashion marketplace, GFG connects brands to over 800 million consumers via its local brands: Dafiti in LATAM, ZALORA in SEA, and THE ICONIC in ANZ. The company's business model is asset-light, enhancing margins and minimizing inventory risks.

A turnaround is expected due to improved consumer sentiment and an ongoing shift to a marketplace model. With a comfortable gross margin and strong cash generation potential, GFG’s shares are regarded as mispriced by NuWays AG.