BofA Upbeat on Inditex Amid Long-term Growth Opportunities; Price Objective Up

09:00 AM EDT, 07/22/2026 (MT Newswires) -- BofA Global Research is optimistic on Industria de Diseño Textil (ITX.MC), d/b/a Inditex, amid expectations that the Spanish fashion retailer's higher commercial space, logistics and technology investments will fuel its growth over the long term. "The group spent EUR1.8bn in capex in the last 2 years to significantly upgrade its logistics capabilities and the 2Q earnings in September is a cross-road for the equity story: 1) The group will start 'lapping' tougher comps from the 3Q current trading period and will need to confirm its ability to still grow at HSD, 2) While Zara is still a driver of growth, younger concepts have to be a relay (and the white space opportunity is here for it), supported by the recent capex spend to drive 'profitable' growth," analysts wrote in a Wednesday note. Inditex is expected to deliver a top-line compound annual growth rate of 8.7% over the next three years. For 2027, the research firm's EPS estimate remains "broadly unchanged," while its EPS projections were increased by 2% for 2028 and 5.7% for 2029. As such, the price objective was lifted to 65 euros from 62 euros, while the stock's buy rating was reaffirmed.