Inditex: UBS still a buyer after interim results
(CercleFinance.com) - UBS has reinstated its "buy" rating on Spanish clothing group Inditex, whose brands include Zara, maintaining its target price at 33 euros, which suggests upside potential of 24%.
H1 results proved to be in line with expectations, although more interestingly the group reported 17% growth in operating profit in local currencies, the broker said.
UBS also highlights H2 forecasts provided by management on this occasion, including sales growth of 4%-6% on a comparable basis, along with a 50 basis-point improvement in the company's gross margin.
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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.
H1 results proved to be in line with expectations, although more interestingly the group reported 17% growth in operating profit in local currencies, the broker said.
UBS also highlights H2 forecasts provided by management on this occasion, including sales growth of 4%-6% on a comparable basis, along with a 50 basis-point improvement in the company's gross margin.
Copyright (c) 2018 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.