Industria De Diseno Textil SA Share From Split

ITX: XMAD (ESP)

Morningstar Rating for Stocks	Fair Value	Economic Moat	Capital Allocation
	€87.00	Jvsnnr	Tkrtfmtjtn

Inditex Earnings: Continuing Strong Performance, but Now Reflected in Valuation

Jelena Sokolova

Jun 5, 2024

We are increasing our fair value estimate for narrow-moat Inditex to EUR 37 per share from EUR 35 following continued solid trends in the first quarter and as we adjust our near-term projections slightly upward. At current levels, the shares look expensive. While we expect above-industry revenue growth to continue, we believe there is less room for margin expansion, given Inditex’s best-in-class operational efficiency and the competitiveness of the apparel industry (meaning that some efficiency gains may need to be reinvested in customer offerings.)

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