Inditex: Invest Securities adjusts target price

(CercleFinance.com) - Invest Securities believes that Spanish clothing group Inditex reported Q1 results that fell short of expectations in terms of sales, and was hit by a provision (308 million euros) that it booked as part of the group's strategy to optimise its store network.


The broker is therefore shaving 50 cents off its target price for the share to 30 euros (versus 30.5 euros previously) due to revised estimates.

The broker is maintaining its buy rating on the share, given the relevance of its BM, combined with its robust financial structure (net cash of 5.7 billion euros at the end of April).

Invest Securities says that the main lesson to be drawn from this publication lies in the presentation of the main lines of the group's 2022 strategy, which is mainly focused on the digitalisation and restructuring of its store network, which will not impact its MT growth momentum (+4%/+6%), which will potentially enhance its margins, while being less capital-intensive.


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