Inditex: Bryan Garnier still a buyer; adjusts target price
(CercleFinance.com) - Bryan Garnier has reinstated its "buy" rating on Inditex, while trimming its fair value for the share from 35 euros to 33 euros, "even if ITX expects most of these margin headwinds to gradually ease off this year.
"The stock has lost 24% since its peak level last summer due to a combination of external factors (FX, defiance vis-à-vis retailers etc.) and the continuous margin decline since 2012. The latter justifies our more cautious stance with regard to the normative margin level".
However, the broker maintains its buy rating on the share of the Spanish textile group, saying that it still believes that Inditex "is the best choice to play the industry's transformative trends."
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