Inditex, the largest IBEX 35 stock, at all-time highs
The shares of the textile group Inditex, owner of brands such as Zara and Pull&Bear, have risen 1.51% to 36.88 euros per share, marking its new all-time high after the previous one, on 2 June 2017, when it closed at 36.66 euros per share. The textile multinational is the largest stock by capitalisation of the IBEX 35, with almost 115,000 million euros and, therefore, its movements are key in the trend of the Spanish stock market.
Inditex has registered this Tuesday the third highest rise in the IBEX 35, with this rise of 1.51% to 36.88 euros per share and in the year accumulates a gain of 51.15%.
After Tuesday’s rise, Inditex shares registered a new high after the one set on 2 June 2017, when the session ended at 36.66 euros.
Subsequently, the covid-19 pandemic and the war in Ukraine, with its economic impact, slowed the evolution of the textile group’s shares.
Diego Morín, an analyst at IG, points out that the textile giant is returning to the highs after taking a “break” in its share price, something he considers “logical and natural after a strong rise since September 2022” and considers that the technical outlook has not changed for the medium and long term.
“Fundamentally, it has solid long-term growth plans, with global sales giving it room to raise prices and is expected to be able to continue to improve the business even in a recession. Its cash is still strong because they don’t need to undertake any major investments, which is positive for shareholder remuneration,” Morín adds.
On Tuesday, two research firms issued recommendations on the company.
On the one hand, Caixabank BPI maintains its recommendation at “buy” and the target price at 39.90 euros; on the other hand, Morgan Stanley also maintains its recommendation at “equal weighting/ in line” and the target price at 38 euros per share.
Inditex has almost 65% of buy recommendations from analysts who follow the stock.
The market consensus, according to Bloomberg, indicates that 64.7% of the analysts who follow Inditex issue a “buy” recommendation; 32.4% are “hold” and 2.9% recommend “sell”.
Inditex recorded record highs at market close on 2 June 2017 when it ended the session at 36.66 euros; subsequently the Covid 19 pandemic and the war in Ukraine, with its economic impact, halted the rallies in the textile group’s shares.
In intraday terms, the highest the textile group’s shares reached was 36.90 euros on 5 June 2017.
Inditex presented in September record results for the first half of the year with earnings of 2,513 million euros in its first fiscal half-year (February to July), 40.1 % more than in the same period then unheard of in 2022 (1,794 million).
The figures presented on 13 September improved on the company’s 2022 records, with turnover up 13.5% to 16.851 billion (14.845 billion in July 2022) and gross operating profit (ebitda) up 15.7% (4.663 billion).
