ZABKA GROUP : (Quick shopping) mission possible

We initiate coverage of Zabka Group (Zabka), a dynamically growing leader (adj. net profit CAGR 2025-2028e of 27%) in convenience shopping in Poland, with an Outperform rating and a target price of PLN 30. The group is engaging time constrained customers with a differentiated proposition while benefitting from secular trends and a supportive macro backdrop. At our target price, Zabka would trade above closest peer Dino, while operating a business model that is less exposed to grocery market price competition, has more opportunities to expand horizontally and offers comparable growth dynamics (top line 2025-2027e CAGR of 14% vs Dino’s 17%). In our view, the potential share overhang from the PE owners is the single biggest risk factor to the share price, but we note the 180-day lock-up following the recent sale of 100m shares.