Inditex falls more than 3% on the stock market after Credit Suisse has cut the target price of its shares
MADRIDUpdated:
Inditex falls more than 3% on the stock market after the investment bank Credit Suisse has cut the target price of its shares from 24 to 21 euros considering that, although it is the best in its class, it is "increasingly mature" and competitive pressure is not expected to relax.
Specifically, at 12.45 the titles of the largest textile group in the world, owner of chains such as Zara or Massimo Dutti, leave 3.39% of their value compared to the close of Wednesday and are exchanged at 23.06 euros. So far this week, Inditex has lost 6.07% on the stock market, while since early January it has depreciated 18.2%. Only last Monday fell by 3.9% dragged, like its peers, by the collapse of the British Asos, that 39% of its value was left on the market after revising its forecasts downwards.
In a report published on Thursday, Credit Suisse highlights that the earnings per share of Inditex has been reduced to 7.5% of annual average in the last five years and that it foresees that in the coming years it will be reduced to 5%.
In addition to lowering your target price, the investment bank reiterates its rating of "low performance" and warns that among the upside risks for Inditex are a substantial weakening of the euro against the dollar or an accelerated capital return.
