(News Bulletin 247) – Deutsche Bank announced on Tuesday that it had raised its price target on Inditex from 30 to 35.5 euros, while maintaining a ‘hold’ recommendation on the stock.
In a research note, the analyst estimates that the Spanish ready-to-wear giant today benefits from almost a decade of strategic investments that allow it to continuously outperform the market.
With annual sales reaching nearly 23 billion euros for its flagship brand Zara, the company now has an insurmountable lead vis-Ã -vis its rivals, adds the intermediary, which allows it to invest in areas that seem most promising.
The professional says he expects this structural outperformance to increase in the years to come, which leads him to now anticipate sales growth of 6% to 7% at constant exchange rates for the group, compared to +4%- +6% so far, accompanied by a favorable effect on margins.
Deutsche Bank nevertheless explains that it retains a ‘hold’ recommendation on the stock because of an upside potential deemed more promising in stocks such as H&M and adidas at current levels.
Copyright (c) 2023 News Bulletin 247. All rights reserved.
I have over 8 years of experience working in the news industry. I have worked as a reporter, editor, and now managing editor at 247 News Agency. I am responsible for the day-to-day operations of the news website and overseeing all of the content that is published. I also write a column for the website, covering mostly market news.
