Inditex: Bryan Garnier cuts target price

(CercleFinance.com) - Bryan Garnier has confirmed its "buy" rating Inditex, while trimming its fair value for the share from 37 euros 35 euros, after it reduced its 2017-19 earnings estimates by an average of 3%, due to negative FX factors.


"The stock is affected by negative newsflow in the fashion industry and growing investor hesitation vis-à-vis retailers which explains the derating." the broker points out.

However, Bryan Garnier says that it is convinced that the Spanish textile group (parent company of Zara), “However, we are convinced that ITX remains the best positioned in terms of offline-online convergence, short lead times and strong FCF generation (EUR3bn in 2017e).”

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