RBC Updates Estimates for Inditex Post-Fiscal H1 Results; Outperform Rating Kept

01:28 AM EDT, 09/10/2026 (MT Newswires) -- RBC Capital Markets revised its earnings projections for Industria de Diseño Textil (ITX.MC), d/b/a Inditex, while maintaining its positive stance after the Spanish clothing company released its fiscal first-half results. "We are maintaining our Outperform rating and EUR63 price target on Inditex, due to strong sales momentum in the business along with a sharply improving [free cash flow] trend. Costs e.g. related to transportation are coming in a bit higher than we expected, but we think over time ITX will be rewarded for its growth potential, consistency and strong cash returns," the research firm said Wednesday. For the six months ended July 31, Zara owner's net sales came in at 19.76 billion euros, up from 18.36 billion euros a year ago. The company's operating expenses grew by 8.3%, running 50 basis points ahead of sales growth when accounting for all lease charges. Against this backdrop, analysts trimmed their fiscal 2027 and 2028 EPS assumptions by 1% to 2%, citing a "slightly softer" margin outlook amid expectations of sustained transportation cost pressures. Meanwhile, the research firm's total sales forecasts were lifted by 1% for the same two years. "However, we think Inditex's sales momentum should enable it to sustain its rating and buying interest in the shares," RBC wrote.