Inditex: Credit Suisse cuts target price
(CercleFinance.com) - Credit Suisse reinstates its "underperform" rating on the Inditex share, having cut its corresponding target price from 24 euros to 21 euros, before the Spanish clothing group presents its FY results on Wednesday.
The broker says that it is reducing its 2020-21 EPS estimates by an additional 20%, due to Inditex's exposure to the European markets that are the most exposed to coronavirus, while reviewing the growing risks of its distribution platform "just in time".
"The shares have fallen 33% from the recent high, but we still do not think they reflect the relatively modest M-T growth prospects (5Y EPS +4.8%pa) and peer de-rating," it adds.
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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 broker says that it is reducing its 2020-21 EPS estimates by an additional 20%, due to Inditex's exposure to the European markets that are the most exposed to coronavirus, while reviewing the growing risks of its distribution platform "just in time".
"The shares have fallen 33% from the recent high, but we still do not think they reflect the relatively modest M-T growth prospects (5Y EPS +4.8%pa) and peer de-rating," it adds.
Copyright (c) 2020 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.