Inditex: Bryan Garnier still a buyer, despite the dollar.
(CercleFinance.com) - Bryan Garnier has confirmed its "buy" rating on Inditex, with a fair value of 38 euros, believing that the stock's fundamentals remain solid and that the Spanish textile group is easily outperforming the rest of its sector.
“Because of its unique supply chain model, investors are aware that the stronger USD is more harmful to ITX than for the rest of the industry, which is largely outsourced in Asia,” the broker says.
According to Bryan Garnier, this negative impact mainly explains the stock's weak performance price before Q2 results, which are scheduled for 20 September, and which have led it to adjust its 2017 EPS estimate by about 3.5%.
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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.
“Because of its unique supply chain model, investors are aware that the stronger USD is more harmful to ITX than for the rest of the industry, which is largely outsourced in Asia,” the broker says.
According to Bryan Garnier, this negative impact mainly explains the stock's weak performance price before Q2 results, which are scheduled for 20 September, and which have led it to adjust its 2017 EPS estimate by about 3.5%.
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.