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EUR 100.00
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The company will release its 2Q’19 results on 11 September at 8:00 (CET). We expect a solid quarter, after a relatively poor Q1 in sales, and with a slightly positive FX effect, which should help growth in operating profit reach double digits. Despite the strong performance in 2019, ITX has beaten the IBEX by +20%, we think the stock is inexpensive against the current backdrop of ultra-low interest rates, and trading below the historical valuation range (23x vs. 25x-30x P/E) due to fears of falling sales and long-term margins as a result of the stiffer online competition. That said, there is a risk of profit taking if the company does not meet expectations when its results are released on Wednesday.
INDITEX: 2Q'19 ESTIMATES (ANÃLISIS BANCO SABADELL)
2Q’19 Estimates: we expect good results. BUY.The company will release its 2Q’19 results on 11 September at 8:00 (CET). We expect a solid quarter, after a relatively poor Q1 in sales, and with a slightly positive FX effect, which should help growth in operating profit reach double digits. Despite the strong performance in 2019, ITX has beaten the IBEX by +20%, we think the stock is inexpensive against the current backdrop of ultra-low interest rates, and trading below the historical valuation range (23x vs. 25x-30x P/E) due to fears of falling sales and long-term margins as a result of the stiffer online competition. That said, there is a risk of profit taking if the company does not meet expectations when its results are released on Wednesday.
Underlying
Inditex (ITX SM)
Provider
Sabadell
Ignacio Romero
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