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Inditex goes out of style and RBC leaves it out of its closet because it can no longer go up



Inditex it cannot go any higher. That is the conclusion of the latest report from RBC Capital Markets. The Toronto-based investment bank has shut out Galician textile from its 'European Recovery Ideas', and despite reiterating its advice to 'overweight', it also maintains its target price (27.5 euros), which is already behind its current levels (28 euros).

"The performance of these titles has been strong and, since we pointed them out, 9 of the 11 have outperformed the Stoxx 600," he argues. RBC.

"If we dig deeper, we can see how the performance of these titles has performed as we expected: 7 of the 11 were behind before the vaccine announcements, and 10 of the 11 were ahead after meeting ", follows the Canadian.

From Inditex, RBC recognizes that she was the one that was doing the best since last July together with Boliden with two advances of 24%. However, titles like AXA, BNP Y Eiffage They have been overtaken by the right supported by the 'vaccine rally'.

As a consequence, the Canadian leaves out the Galician, whose greatest risks are: "a greater slowdown in its main markets that will weigh down its sales, weaker gross margins than expected due to pressure from its online competitors, and a future strengthening the euro against other currencies ".

RBC It also points to possible catalysts for the title: "More resilient gross margins and tight cost control that will be seen in the results that will be published on December 15, the return to the extraordinary dividend in 2021 … ".


RBC it does reiterate its preference for Acciona, which remains on the list. The Canadian not only reiterates her advice of 'overweight'to the Spanish listed company, but also maintains its target price of 115 euros which, from its current levels of 100.6 euros per share, augurs a potential upside of 14.3%.

In so far this year, Actuate it rises a slight 3%, which has been possible thanks to the rally of the title after the 'vaccine effect' (+ 12%), and has allowed it to leave behind the red (-8%).

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