Credit Suisse cuts Inditex's price target and warns of weakening demand and inflation

MADRID, 5 Sep. (EUROPA PRESS) -

Credit Suisse has assigned the rating of 'underweight' to the Inditex share and cut its target price to 20.50 euros per share from the previous 24 euros a few days after the presentation of its results on September 14.

The Swiss bank's report anticipates good results for the second quarter of the company founded by Amancio Ortega in a favorable environment for the group.

However, analysts warn about Inditex's performance for the next 18 months due to the weakening of demand, the increase in the costs of supplies and sales expenses, adverse exchange rates and inflation.

"We are increasingly cautious about the outlook for the next 18 months, as global demand is weakening, input costs are rising, and the exchange rate and inflation are adverse," the analysts note.

Simultaneously, the definitive exit from Russia would presumably suppose, as revealed by the textile company, new amortizations and additional treasury costs.