Bank of America raises Inditex target price to €65, keeps buy rating

Bank of America reaffirmed its buy recommendation for Spanish apparel giant Inditex and lifted its target price from €62 to €65 per share, implying about a 19% upside. The bank values Inditex’s market capitalisation at over €200 billion, a level never reached by a Spanish company.

BofA highlighted the €1.8 billion capital‑expenditure spent over the past two years on logistics and fixed assets, expecting it to accelerate revenue growth through the end of the decade. It cited stronger Zara store sales, the expansion of the Lefties format and enhanced online offerings as drivers. The broker sees an 8.7% compound annual growth rate in revenue over the next three years and anticipates the upcoming second‑quarter results in September to be a pivotal point for the stock.

At the time of the note, Inditex shares traded around €54.3‑€54.6, up modestly on the news.