Inditex publishes the results of its third fiscal quarter on December 15. After recovering in the second quarter after the losses of the first (-409 million euros), which led him to skyrocket on September 16, JP Morgan experts do not expect that this time the figures will have this effect catalyst.
"After the recovery that the titles (of Inditex) have registered in the last three months (…) we see a limited possibility of revaluations with the next presentation (of results)", they anticipate from the US investment bank.
JP Morgan estimates that sales in the period (excluding the impact of currencies) are down 10%, with performance deteriorating from mid-October onwards due to the second wave of Covid-19 and associated restrictions in many of its markets. .
"In November we estimate that 20% of Inditex stores were closed which, therefore, will weigh on any commercial update that is provided", they specify.
For their part, these experts foresee that online sales will continue to provide "strong support and that Inditex will once again show its flexibility in opex (operating expenses) and inventory management.
JP Morgan has a board to overweight Inditex, with a price target of € 22.
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