Jefferies praises Inditex's store strategy and margin expansion potential, lifts PT to 67 euros

Industria de Diseno Textil SA

18/12/2025 13:46

** Jefferies raises Zara owner Inditex's ITX.MC PT to 67 euros from 51.5 euros, citing store modernisation, operational efficiencies and EU regulatory changes as key drivers of steady margin expansion and compounding returns

** The brokerage highlights that Inditex's modernisation of customer experience and its critical mass of elevated locations are strengthening its competitive moat, enabling remarkable control over operating costs

** Jefferies notes significant progress in the Spanish retailer's EBIT margin, now at 19.9% in the last 12 months, surpassing pre-COVID levels of 16.9%

** It underscores the group's resilience, with strong third quarter results delivered despite a challenging European consumer environment

** The brokerage firm adds that Inditex could benefit from a potential peace deal in Ukraine and the new 3 euro duty on imports into Europe, which is expected to curb the disruptive impact of Chinese platforms on European retailers

** Analysts' median PT for the stock is 56.30 euros, according to data compiled by LSEG

 (Reporting by Mireia Merino)

 ((mireia.merino@thomsonereuters.com))