Inditex: Invest Securities adjusts target price.
(CercleFinance.com) - Invest Securities has confirmed its "buy" rating on the Inditex share, although has trimmed its target price from 41 euros to 39 euros, in the wake of its cut in EPS estimates, which, over the next three years it has respectively reduced by -3.
9%, -0.9%, and -0.2% for the Spanish clothing company.
"Q2 results that were published yesterday came in below expectations, due to a negative currency effect," the analyst pointed out, adding that organic sales growth suffered from a slowdown as expected, although growth picked up again at the start of Q3.
However, the broker's analysts maintain their "buy" rating on the stock, due to the prospect of double-digit annual earnings growth over the medium term, along with strong FCF generation, again over the medium term, due to the investment cycle, and the share's attractive valuation.
Copyright (c) 2017 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.
9%, -0.9%, and -0.2% for the Spanish clothing company.
"Q2 results that were published yesterday came in below expectations, due to a negative currency effect," the analyst pointed out, adding that organic sales growth suffered from a slowdown as expected, although growth picked up again at the start of Q3.
However, the broker's analysts maintain their "buy" rating on the stock, due to the prospect of double-digit annual earnings growth over the medium term, along with strong FCF generation, again over the medium term, due to the investment cycle, and the share's attractive valuation.
Copyright (c) 2017 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.