Inditex: Bryan Garnier maintains 'buy' after derating.
(CercleFinance.com) - Bryan Garnier is maintaining its "buy" rating on Spain's Inditex, along with its fair value of 38 euros, after several headwinds have resulted in a 20% derating since the share's peak level in June.
The broker says the three main headwinds behind the share's fall are: (1) the weaker US dollar, (2) the Catalonia crisis and (3) negative newsflow in the apparel industry.
"We believe that their impacts were overestimated by the market and we continue to view Inditex as the best-in-class player capable of maintaining double-digit EPS growth in a volatile environment," BG says.
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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.
The broker says the three main headwinds behind the share's fall are: (1) the weaker US dollar, (2) the Catalonia crisis and (3) negative newsflow in the apparel industry.
"We believe that their impacts were overestimated by the market and we continue to view Inditex as the best-in-class player capable of maintaining double-digit EPS growth in a volatile environment," BG says.
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.