Inditex: Crédit Suisse downgrades stock
(CercleFinance.com) - Crédit Suisse has downgraded its rating on Inditex from "neutral" to "underperform", while reducing its corresponding target price from 24.
5 euros to 23 euros, highlighting the Spanish textile group's exposure to "structural shifts in the industry".
The broker has cut its EPS estimates by 18% for the current year, so as to take into consideration recent lockdowns relating to Covid-19, in addition to real concerns " modest top-line growth... and margin pressure".
"At best we see Inditex delivering mid-single digit M-T EPS growth, and risks to the downside are not discounted in 2021/22 PER of 28x," Crédit Suisse adds.
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