Inditex: Crédit Suisse downgrades stock

(CercleFinance.com) - Crédit Suisse has downgraded its rating on Inditex from "neutral" to "underperform", while reducing its corresponding target price from 24.
5 euros to 23 euros, highlighting the Spanish textile group's exposure to "structural shifts in the industry".

The broker has cut its EPS estimates by 18% for the current year, so as to take into consideration recent lockdowns relating to Covid-19, in addition to real concerns " modest top-line growth... and margin pressure".

"At best we see Inditex delivering mid-single digit M-T EPS growth, and risks to the downside are not discounted in 2021/22 PER of 28x," Crédit Suisse adds.


Copyright (c) 2020 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.