Inditex: Invest Securities still a buyer - raises target

(CercleFinance.com) - Invest Securities reaffirms its "buy" recommendation on the Inditex share, while raising its target price from 23.
5 euros to 30.5 euros, in its comments on the Spanish textile group and its Swedish peer H&M, in the face of the Covid-19 pandemic.

The broker estimates that assuming the lockdown lasts around 10 weeks, its annual sales would fall by around 15% in 2020, to which should be added a sharp fall in profitability considering fixed costs.

However, it says that certain business models should stand out from the rest, adding that between Inditex and H&M, it prefers the former, given its flexible business model and robust financial situation.


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