Inditex: target price raised by Barclays
(CercleFinance.com) - Barclays has reaffirmed its 'equal weight' recommendation on Inditex, with a target price raised from E39 to E42, the day after the parent company of the Zara clothing chain published a better-than-expected quarterly trading update.
Operating profit for the first accounting quarter was 2% ahead of our expectations and consensus, despite slightly lower-than-expected gross margin growth, the broker points out.
Barclays also notes that the Spanish textile group posted double-digit sales growth in Q1, and again in May, despite difficult comparatives.
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