Inditex's Buy Rating Affirmed as Berenberg Notes In-line Fiscal Q1 Results; Estimates Updated

12:04 AM EDT, 06/04/2026 (MT Newswires) -- Berenberg reiterated its buy rating for Industria de Diseño Textil (ITX.MC), d/b/a Inditex, after the Zara owner reported "broadly in-line" fiscal first-quarter results and strong current trading. "In challenging times and volatile trading conditions, Inditex's agile business model has in the past proved advantageous, and this seems to be the case once again in the context of the Middle East conflict," analysts said Wednesday. "There is no meaningful change to our estimates. We raise our [constant currency] sales growth forecast from 7.0% to 7.5%, but factor in a stronger depreciation growth, +6% yoy (following the 8% increase reported in Q1)." The research firm does not expect the company's 11.5% constant currency sales growth in May to continue due to calendar impacts, such as a short reporting period and Eid, on current trading. Sales growth for the second quarter and second half of fiscal 2027 is estimated to come in at Inditex's long-standing view of 6% to 8%. Against this backdrop, Berenberg tweaked its financial estimates for Inditex, with sales projections for fiscal years 2027 to 2029 nudged higher. Meanwhile, EBIT and EPS forecasts for 2027 were increased, while those for 2028 and 2029 were reduced. The Spanish clothing retailer's price target of 62 euros was also unchanged.