Inditex: Morgan Stanley downgrades its rating.
(CercleFinance.com) - Morgan Stanley has downgraded its rating on Inditex from "overweight" to "weight in line" and has cut its target price for the share from 38 euros to 30 euros, highlighting the Spanish textile group's high valuation.
"Despite generating less than half the revenues, Inditex's market cap briefly surpassed that of Nike and Adidas combined in June," the broker underlined, for which this makes little sense.
This point has led the broker to consider whether the recent fall in the share price is justified, rather than creating an attractive buy opportunity for investors.
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The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.
"Despite generating less than half the revenues, Inditex's market cap briefly surpassed that of Nike and Adidas combined in June," the broker underlined, for which this makes little sense.
This point has led the broker to consider whether the recent fall in the share price is justified, rather than creating an attractive buy opportunity for investors.
Copyright (c) 2017 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.