“Inditex, everything in the price, limited capacity: UW (20 euros)”

InditexResilient growth and margins: Buy Inditex

Morgan Stanley | There is no doubt that Inditex (ITX) is a high quality and well-managed business with an impressive historical record.

Neverthless, everything is already included in the Price and with stores in countries representing 95% of global GDP, it has already reached its point of maturity and its capacity for growth is seen as very limited.

In addition, it is affected by the same risks as the rest of the its industry: lack of fashion trends, increase in competition, pressure from online channels.

Inditex, Underweight. Objective Price 21 – 20 euros.


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The Corner
The Corner has a team of on-the-ground reporters in capital cities ranging from New York to Beijing. Their stories are edited by the teams at the Spanish magazine Consejeros (for members of companies’ boards of directors) and at the stock market news site Consenso Del Mercado (market consensus). They have worked in economics and communication for over 25 years.