Inditex: RBC cuts target price due to strong euro.
(CercleFinance.com) - RBC Capital Markets maintains its "outperform" rating on Inditex, but has reduced its target price from 39 euros to 37 euros on the back of the euro's recent strength.
The Canadian broker thinks the fashion retailer's like-for-like performance remains healthy in a tough sector and given difficult comparison bases, helped by a more price competitive offer, especially thanks to Zara being more price competitive this season.
"Short term margins are being impacted by the strong euro, but we view Inditex as a core holding long term for its differentiated business model and potential to generate durable double digit top and bottom line growth," RBC said.
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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.
The Canadian broker thinks the fashion retailer's like-for-like performance remains healthy in a tough sector and given difficult comparison bases, helped by a more price competitive offer, especially thanks to Zara being more price competitive this season.
"Short term margins are being impacted by the strong euro, but we view Inditex as a core holding long term for its differentiated business model and potential to generate durable double digit top and bottom line growth," RBC said.
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.