Inditex’s impressive results yesterday have prompted Canadian bank RBC to up its forecasts but it still prefers JD Sports Fashion PLC (LSE:JD.) and Zalando.
The Zara owner’s price target is now €50 from €48, with the growth of 11% in revenues in the third quarter so far seen as 'very reassuring' by the bank.
In a note, RBC said it is “Raising operating forecasts slightly, some negative fx effects.
“We have raised our LFL sales assumptions slightly for this year and next, but this is offset by a higher negative fx translation effect on top line.
"ITX continues to deliver strong results, but we currently have more valuation upside for some other stocks notably Zal and JD."