Inditex: RBC downgrades to 'underperform'
(CercleFinance.com) - On Wednesday evening RBC downgraded Inditex shares from 'sector perform' to 'underperform', with a target price reduced from E52 to E50.
Last night, the Canadian broker said that it had reduced its earnings forecasts for the Spanish ready-to-wear group, following a Q3 that turned out to be weaker than expected.
The stock has certainly corrected a little, but it is still appreciated nearly 30% this year, the broker points out, adding that with "a 2025 P/E of 25x, its valuation is rather rich.
Inditex is a fine company, with a solid management team, but we see more upside potential in other retailers, it concludes.
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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.
Last night, the Canadian broker said that it had reduced its earnings forecasts for the Spanish ready-to-wear group, following a Q3 that turned out to be weaker than expected.
The stock has certainly corrected a little, but it is still appreciated nearly 30% this year, the broker points out, adding that with "a 2025 P/E of 25x, its valuation is rather rich.
Inditex is a fine company, with a solid management team, but we see more upside potential in other retailers, it concludes.
Copyright (c) 2024 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.