Inditex: shares lose ground on broker's comment.
(CercleFinance.com) - Shares in Spanish fashion retailer Inditex are down 1.
2% on Monday, underperforming Madrid's IBEX 35 index (-0.8%), as Credit Suisse reduced its estimates for the company.
In a research note sent to clients this morning, the brokerage firm cut its FY forecasts by 2.5%, adjusting for the euro's recent strenghth ahead of Q2 results on 20 September.
"Zara's highest prices and gross margins tend to be in dollars-linked markets, with the opposite in the Eurozone," Credit Suisse explained.
"Recent hot weather in Spain/Southern Europe will not have been helpful to sales," it added.
The broker therefore maintains its "underperform" rating on the stock, along with its target price of 25 euros.
Inditex shares are currently down 1.2% at 31.5 euros in Madrid today.
Copyright (c) 2017 CercleFinance.com. All rights reserved.
2% on Monday, underperforming Madrid's IBEX 35 index (-0.8%), as Credit Suisse reduced its estimates for the company.
In a research note sent to clients this morning, the brokerage firm cut its FY forecasts by 2.5%, adjusting for the euro's recent strenghth ahead of Q2 results on 20 September.
"Zara's highest prices and gross margins tend to be in dollars-linked markets, with the opposite in the Eurozone," Credit Suisse explained.
"Recent hot weather in Spain/Southern Europe will not have been helpful to sales," it added.
The broker therefore maintains its "underperform" rating on the stock, along with its target price of 25 euros.
Inditex shares are currently down 1.2% at 31.5 euros in Madrid today.
Copyright (c) 2017 CercleFinance.com. All rights reserved.