Investing.com -- Goldman Sachs downgraded Allegro.eu to “neutral” from “buy,” citing the stock’s strong share price performance, which closed the valuation gap that originally supported the buy recommendation.
Shares of the Polish online e-commerce platform were down 2.9% at 06:10 ET (10:10 GMT).
Since Goldman Sachs added Allegro to its “buy” list on February 25, shares of the Polish e-commerce company have risen 36.8%, outperforming the Polish WIG-20 index, which gained about 6%, the FTSE World Europe index, which fell 2.3% in zlotys, and the MSCI EM EMEA index, which fell about 7% over the same period.
Allegro now trades at a 12-month forward enterprise value-to-EBITDA multiple of 10.5 times, a discount of about 5% to its three-year historical average, Goldman Sachs said.
The broker’s updated growth-adjusted 2027 target EV/EBITDA multiple of 9.3 times "sits broadly in line with historical averages."
Goldman Sachs raised its 12-month price target on the stock to 41 zlotys from 38 zlotys, reflecting updated forecasts and a higher target multiple "driven by a global e-commerce sector re-rating."
"With remaining upside of c.6.3%, we now see more attractive risk-reward opportunities elsewhere in our coverage," the broker said.
Goldman Sachs said the core pillars of its positive thesis on Allegro "remain directionally intact," citing resilient Polish consumer demand, a stable competitive landscape, improving logistics execution and AI-driven product investments.
It said a signed Letter of Intent with InPost was "incrementally positive" for market confidence in the durability of Allegro Poland’s margins.
The broker said the technical shareholder overhang on the stock "has substantially dissipated" following a private equity placement on June 16, with shares reacting positively, up about 10%.
Goldman Sachs said it is tracking several catalysts going forward: Polish consumer health and re-accelerating gross merchandise value growth; continued adjusted EBITDA margin delivery in Poland and progress on Allegro One’s cost advantage versus third-party alternatives; any regulatory or enforcement actions limiting cross-border Chinese competition; advertising and monetization momentum; and further capital allocation signals including buybacks and leverage trajectory.
The broker’s revenue forecast for 2026 stands at 13.35 billion zlotys, rising to 14.94 billion zlotys in 2027 and 16.54 billion zlotys in 2028.
Earnings per share are forecast at 2.22 zlotys for 2026, 2.67 zlotys for 2027 and 3.16 zlotys for 2028.
Goldman Sachs has received compensation for investment banking services from Allegro.eu in the past 12 months and expects to seek further compensation in the next three months.
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