The Spanish textile giant, Inditex, closed the last November session on the Madrid Stock Exchange with a fall in its share price from 6.17% to 27.86 euros. In the month it lost 10.82 percent.
Regarding the technical analysis of the price, Joan Cabrero, advisor at Ecotrader, assured that the support is at 27 euros, which is the “optimal zone” for acquiring Inditex shares.
The sale of shares occurred after the company that owns Zara, Massimo Dutti, Stradivarius, among other clothing brands, announced that Pablo Isla will cease to be the president of the firm in April 2022, being replaced by Marta Ortega, the youngest daughter of the founder of the consortium, Amancio Ortega.
Although in September it was Isla himself who, in an interview with The Wall Street Journal Magazine, anticipated that Marta Ortega’s role within the group will be more important during the next decade, the market took over at the top as a surprise . Why? “Especially due to the departure of Pablo Isla, under whose leadership the company has been successful,” the newspaper explained.
Proof of this is the strong revaluation in the stock market of the company since Isla became president.
Bankinter analysts explained that Isla “has successfully led the transformation of the group and achieved an unprecedented integration of online and physical sales in the sector.”
Most experts agree that in the medium term Inditex will maintain its roadmap, but Pablo Isla’s departure “may leave a great void in the short term,” said Cedric Rossi, an analyst at Garnier & Co., in a note he gave to know Bloomberg.
At the moment, the Bloomberg consensus does not show any change in the recommendations of the different analysts on the actions of the Galician firm.
Almost half (45.7%) choose the advice to ‘hold’, compared to five (14.3%) who choose to ‘sell’ and 14 (the remaining 40%) to ‘buy’. The average 12-month target price is 32.72 euros, 17.44% higher than the current one.
The eToro spokesman in Spain, Javier Molina, acknowledged that “Isla’s replacement has surprised, although the movement of the titles is” a bit exaggerated. “
Reference-www.eleconomista.com.mx