Inditex upgraded to Outperform from Sector Perform at RBC Capital

RBC Capital upgraded Inditex (IDEXY) to Outperform from Sector Perform with a price target of EUR 52, up from EUR 49. Inditex’s strong product offering and quick response to trends position it for further like-for-like share gains from smaller and weaker competitors, with gross margin likely to outperform next year, the analyst tells investors in a research note. After a period of heavy capital spending, free cash flow is rising and the valuation now appears moderate relative to high-quality global peers, RBC says.