AlphaValue/Baader Europe Ups Inditex Forecasts After Better-than-Expected Fiscal Q1 Results

06:45 AM EDT, 08/12/2026 (MT Newswires) -- AlphaValue/Baader Europe lifted its forecasts for Industria de Diseño Textil (ITX.MC), d/b/a Inditex, after the Spanish clothing retail group's fiscal first-quarter financial performance came in better than expected. "Despite a highly volatile consumer environment and continued disruption from the conflict in the Middle East, Inditex has maintained solid trading momentum. The Spring/Summer collections have been well received, with growth primarily driven by volumes rather than pricing. Zara in particular continues to show healthy momentum, supporting both stronger revenue expectations and a more favourable product mix," analysts said in a Tuesday note. As such, analysts raised their revenue and profitability estimates for the fiscal second quarter and onward. In terms of EPS, the projections for 2026 and 2027 were increased by 7.27% and 6.65%, respectively, to 2.19 euros and 2.38 euros. The research firm, however, continues to see rising raw material and transport costs as headwinds to profitability, but acknowledged the Zara owner's ongoing efforts to mitigate these pressures. The reduce-rated stock has a price target of 58.7 euros.