Credit Suisse reiterates its advice to 'underweight' Inditex and believes that Russia will have a negative impact

MADRID, 8 Jun. (EUROPA PRESS) -

Credit Suisse has reiterated its 'underweight' rating on Inditex following the withdrawal of its operations in Russia, which it expects will have a negative impact on its income statement, and weak activity in China.

Likewise, the entity maintains its target price at 22 euros per share, below the 23 euros at which it is listed in the session this Wednesday, coinciding with the presentation of the results of its first fiscal quarter, which have been, according to Credit Suisse, "noticeably better" than expected by consensus, with "strong" sales growth and "resilient" gross margins.

Despite this, the bank points out that it is "difficult to know what to do with these results" and, in this sense, warns that, although conditions are "very favorable" for its model and for the market in general, it is "unlikely "that last as the year progresses.

The Credit Suisse report also highlights how Inditex's operating expenses have been increased by the high price of rents and transportation costs.

The entity has highlighted that Inditex has been "quite aggressive" increasing prices for the spring-summer campaign and has added that the weather has helped a lot during the quarter and fashion trends have also been favorable for its offer.

Inditex shares rose 4.32% at 12:30 p.m. and were trading at a price of 23.19 euros.