Inditex: Invest Securities still a buyer

(CercleFinance.com) - Invest Securities points out that Inditex (operator of Zara stores) is the world's leading ready-to-wear clothes retailer, ahead of H&M.

The broker says that Inditex is a saga based on a business model that is both ambitious and efficient.

Inditex's stockmarket history reflects its ability to deliver strong, profitable growth over the long term. In 2018, given disappointing results, the stock has been snubbed by the market, which is undoubtedly exaggerated by it belonging to a difficult sector, the broker explains.

Although frowned up the day of their publication, the group's H1 2019 results suggest that 2018 was an air pocket for a company whose prospects remain solid, analysts add.

Invest Securities therefore reiterates its buy rating on the Inditex share, with a target price of 32.3 euros (19% upside). In addition, in an uncertain environment, the share offers the guarantee of generous dividends, financed by the excess liquidity of its balance sheet (cash of 6.7 billion euros).


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