Inditex: Credit Suisse adjusts target price
(CercleFinance.com) - Credit Suisse maintains its 'underperform' rating on Inditex shares, although has nudged up its target price for them to 26 euros (from 25 euros), after a 6% increase in FY EPS estimates after the Spanish textile group published its Q2 results.
With a faster-than-expected shift to online retailing, the broker now expects its EBIT margin to be pretty much unchanged over the next three years, compared with the consensus expectation of a 10-year peak in 2024.
Credit Suisse has increased its forecasts for Inditex, now expecting EPS growth of 4.5% p.a. over three years, although believes that, trading at 27x EPS the stock remains overvalued given its modest growth potential.
The share is currently down about 1%, pretty much in line with the market in Madrid.
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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.
With a faster-than-expected shift to online retailing, the broker now expects its EBIT margin to be pretty much unchanged over the next three years, compared with the consensus expectation of a 10-year peak in 2024.
Credit Suisse has increased its forecasts for Inditex, now expecting EPS growth of 4.5% p.a. over three years, although believes that, trading at 27x EPS the stock remains overvalued given its modest growth potential.
The share is currently down about 1%, pretty much in line with the market in Madrid.
Copyright (c) 2021 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.