Inditex: RBC downgrades to 'underperform

(CercleFinance.com) - RBC announced on Wednesday evening that it had downgraded its recommendation on Inditex shares from 'in line with sector performance' to 'underperform', with a price target reduced from 52 to 50 euros.


In a research note published last night, the Canadian broker indicated that it had revised its earnings forecasts for the Spanish ready-to-wear group downwards, following a 3rd quarter that turned out to be weaker than expected.

The stock has certainly corrected a little, but it is still showing a revaluation of nearly 30% this year", the broker points out, adding that with "a PER 2025 of 25x, its valuation is rather rich".

"Inditex is a fine company, with a solid management team, but we see more upside potential in other retailers", he concludes.

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