Inditex: UBS still a buyer after interim results

(CercleFinance.com) - UBS has reinstated its "buy" rating on Spanish clothing group Inditex, whose brands include Zara, maintaining its target price at 33 euros, which suggests upside potential of 24%.


H1 results proved to be in line with expectations, although more interestingly the group reported 17% growth in operating profit in local currencies, the broker said.

UBS also highlights H2 forecasts provided by management on this occasion, including sales growth of 4%-6% on a comparable basis, along with a 50 basis-point improvement in the company's gross margin.


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