Dressed for the occasion - upgrade to OW

研报英文原文证据摘录

Dressed for the occasion - upgrade to OW

Equity Research

27 July 2026

Inditex SA

Dressed for the occasion - upgrade SIGNATURE

to OW

We see muted TSR performance as an opportunity. We like ITX.MC/ITX SM OVERWEIGHT

Inditex's pricing power and inventory control into COGS from Equal Weight

inflation. The growth outlook is well underpinned and we see European General Retail UnchangedNEUTRAL

upside to mid-term cons EBIT margins. Valuation looks Price Target EUR 62.50

reasonable. We expect mid-teens TSR delivery. Upgrade to raised 12% from EUR 56.00

OW, PT €62.50. Price (24-Jul-26) EUR 54.46 Potential Upside/Downside +14.8%

Source: Bloomberg, Barclays Research

Upgrade Inditex to Overweight: Upside to consensus, mid-teen TSR, reasonable valuation.

With potential upside now less exciting for our Overweight names following strong runs (TSR Market Cap (EUR mn) 169732

YTD, OW M&S +16%, OW B&M +30%, OW Pepco +44%), we see an opportunity to take advantage Shares Outstanding (mn) 3116.65

of Inditex’s relatively muted TSR performance (-2% YTD and +14% in 2025) as: 1) we like Inditex's Free Float (%) 35.65

pricing power and inventory control into an inflationary COGS environment; 2) we see upside to 52 Wk Avg Daily Volume (mn) 2.3

mid-term consensus EBIT margins (we are 2% ahead of consensus on FY26-28 earnings); and 3) Dividend Yield (%) 2.20

the stock does not look cheap, but it doesn't look expensive either looking across global Return on Equity TTM (%) 33.96

consumer discretionary. We think the stock can deliver a mid-teens TSR over the next 12 months Current BVPS (EUR) 6.09

through +11% EPS growth and 4% dividend yield. Source: Bloomberg

Differentiated work - 1) Price architecture analysis based on our proprietary data bolsters our Price Performance Exchange-MC