Inditex: Credit Suisse cuts target price
(CercleFinance.com) - Credit Suisse maintains its "underperform" rating on Inditex shares, having reduced its target price for them to 20.
5 euros, despite raising its full-year earnings guidance ahead of its Q2 earnings call on 14 September.
"However we are increasingly cautious about the outlook over the next 18m, with demand weakening, rising input costs, adverse FX and SG&A inflation," it says.
The broker now expects 2023-24 EPS to be 12% below consensus. "We also believe that Inditex, and H&M, will continue to de-rate reflecting diminished growth prospects in Emerging Markets," analysts add.
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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.
5 euros, despite raising its full-year earnings guidance ahead of its Q2 earnings call on 14 September.
"However we are increasingly cautious about the outlook over the next 18m, with demand weakening, rising input costs, adverse FX and SG&A inflation," it says.
The broker now expects 2023-24 EPS to be 12% below consensus. "We also believe that Inditex, and H&M, will continue to de-rate reflecting diminished growth prospects in Emerging Markets," analysts add.
Copyright (c) 2022 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.