Morgan Stanley Ups Price Target for Allegro.eu on 'Better' InPost Terms; Overweight Rating Kept

07:59 AM EDT, 09/10/2026 (MT Newswires) -- Morgan Stanley raised its price target for Allegro.eu (ALE.WA, AL0.F), saying "better" prospective contract terms with InPost (INPST.AS) support analysts' confidence in the e-commerce group's long-term margin potential. "Back in June, Allegro reached a Letter of Intent with InPost, where the envisioned agreement would include a reduction in delivery prices and a revised tariff indexing formula. It will also incorporate multi-year provisions regarding volumes, capacities, and service levels between the two operators. An agreement is expected to be reached in 'coming months,' and we see the outcome as leading to potential margin expansion over the mid to long term for Allegro," according to a Wednesday note focused on internet and media companies in Europe. As a result, the research firm raised its price target to 48 Polish zlotys from 38.50 zlotys, while maintaining its overweight rating. Morgan Stanley also adjusted its earnings forecasts, lifting its full-year 2026 to 2028 gross merchandise value and revenue estimates by 1% alongside EPS projection increases of 1% for 2026 and 4% year over year for 2027 and 2028. "It follows on from Allegro's Q2 trading update, that saw the company note that they were tracking ahead of 2026 guidance, attributable to performance in Poland, with the company noting they will update investors in due course as to revised guidance, which we assume will be at the next set of results in mid-September," the note said.