Inditex: Invest Securities trims target price

(CercleFinance.com) - In a report released on Thursday, Invest Securities reduced its target price on the Inditex stock from 39 euros to 38 euros, while maintaining its "buy" rating.


The broker reacted to the publication of Q3 results which are in line with expectations, albeit marked by a slowdown in organic growth (+4% estimated, against +6% in H1) due to adverse weather conditions in October.

In addition, it has trimmed its FY organic revenue growth forecast from 6.5% to 6%, and has lowered its EPS estimates by 4.7%, 4.7% and 4.2% respectively over the next 3 years.

However, Invest Securities remains a buyer of the stock, both due to the prospect of double-digit annual earnings growth over the medium term, coupled with strong free cash flow generation - again over the medium term, thanks to the investment cycle and finally, the stock's attractive valuation.


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