BofA reinstates Inditex at 'buy' as it sees further room to grow
** BofA Securities reinstates Inditex ITX.MC with a "buy" rating and a PT of 61 euros, vs 53.22 euros at Thursday's close, as it expects the Zara-owner's business model to continue to fuel growth 2-3x above market
** "The group's future growth potential is underpinned by investments 3x above its closest peers over the coming 24 months," the broker says
** It sees multiple growth avenues following Inditex's strategic realignment and says the strategy of targeting less but larger stores is playing out as sales densities already grew 50% over four years
** BofA expects the group's gross margin to increase in the medium term and mild negative impacts of raw material and freight costs to be more than offset by structural improvements in discounted sales
** Out of 28 analysts that cover Inditex, 16 rate the stock "strong buy" or "buy", ten "hold", and two "strong sell" or "sell" - LSEG
Reporting by Tiago Brandao
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