Bank of America (BofA) has once again bet on Inditex by reaffirming its buy recommendation on the stock and raising its price target to 65 euros per share, compared to the 62 euros set previously, an adjustment that the entity links to the "strong investments" made by the textile group.
"The group has allocated 1.8 billion euros to fixed capital investment in the last two years to significantly improve its logistics capabilities, and the results of the second quarter, which will be published in September, represent a turning point for the stock's trajectory," the entity stated.
According to the American bank, this reinforcement of spending on fixed capital investment "should drive" a greater acceleration in Inditex's revenue growth "until the end of the decade," supported both by the increase in sales at Zara stores and by the international expansion process of Lefties.
In relation to Lefties, BofA highlights that its new establishments are five times larger than the group average, which represents around 20% of the increase in Inditex's commercial space in the current fiscal year, and that its online channel "will allow it to gain market share against its direct competitor, Primark."
Looking ahead to the coming quarters, BofA anticipates that the group will begin to "exceed" more demanding comparisons starting from the third quarter of the current fiscal year, at which point, according to the firm, "it must confirm its ability to continue growing at a sustainable high growth rate."
In this context, the entity projects that Inditex will achieve an increase in its revenue with a compound annual growth rate (CAGR) of 8.7% over the next three years, which "will drive expansion in untapped markets," both in new geographical areas and in different price segments, "and the gain of market share."
On the stock market, Inditex was trading around 1:45 PM this Monday at 54.28 euros per share, after recording an increase of 0.33%. Despite this intraday advance, its shares have accumulated a decline of 3.62% so far in 2026, although they register a revaluation of 30.15% over the last twelve months.