Inditex: UBS upgrades shares to 'buy'
(CercleFinance.com) - UBS has upgraded its rating on Inditex from "neutral" to "buy," saying that it expects the Spanish clothing retailer's recent investment in RFID technology to pay off.
In a research report sent to clients, the broker said Inditex's recent move in Radio Frequency Identification Technology bodes well for further multi-channel revenue growth, and at a lower cost to serve.
"The strategic combination of flagships and e-commerce has served Inditex well over the last few years," UBS wrote in the report.
"With Zara now 100% RFID, Inditex is seeking to use this capability to drive profitable online sales further," it added.
UBS thinks RFID is potentially the "holy grail" for multi-channel retailers, as the technology gives faster and more accurate information, hence being particularly useful for e-commerce.
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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.
In a research report sent to clients, the broker said Inditex's recent move in Radio Frequency Identification Technology bodes well for further multi-channel revenue growth, and at a lower cost to serve.
"The strategic combination of flagships and e-commerce has served Inditex well over the last few years," UBS wrote in the report.
"With Zara now 100% RFID, Inditex is seeking to use this capability to drive profitable online sales further," it added.
UBS thinks RFID is potentially the "holy grail" for multi-channel retailers, as the technology gives faster and more accurate information, hence being particularly useful for e-commerce.
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.