Inditex shares gain 11 percent in 2013
Friday, 27 December 2013 Inditex shares are about to close up for the fifth consecutive year. The stock has gained over 11 percent so far this year, targeting an annual closing price of 120 euros per share.With just a week ahead to put an end to the year, shares of Inditex are trading within the region of 116 euros per share and, according to those who follow closely the value, they” could reach 120 euros before the 31st”. It’s noteworthy that only in December, Inditex has received twenty recommendations to buy or maintain.
According to data compiled by FactSet, Inditex have an upside potential of 2 percent, which means that the value would sooner or later reach the 119.05 euros per share. A target price that so far this year has increased by 13 percent as highlighted ‘The Economist ‘ .
Once the stock trades at 119.05 euros, the Arteixo-based group will have a market capitalisation of around 74,200 million euros.
“We have underweighted the retail sector in general, but we recommend buying Inditex for its quality and global business and because we believe it may be one of the few retail companies that exceed the market in 2014” summarised a report issued by Société Générale .
Inditex stock up by 11 percent in 2013
Citigroup said the nine-months results that the company released earlier in December indicate that Inditex has been “one of the few beneficiaries of the fast transfer of online sales from physical stores” and that the company expects to continue to deliver sales growth.
“We are seeing positive growth in sales in Spain” in the second half of 2013, confirmed in early December the group’s president, Pablo Isla.
“Inditex has been able to sustain its level of sales thanks to its internationalisation, in addition to online sales. The main prospect for income’s growth for Inditex will remain abroad, but the percentage of sales in Spain is not doing as bad as in the past years, stressed Luis Buceta , director of BNP Paribas Weath Management.
Additionally, online sales have become a “major part” of the business, given the “high potential for growth” of the markets in which they are present, added Isla.