On Tuesday, HSBC raised its target price for Inditex from 44 to 51 euros, while maintaining its buy recommendation on the Spanish clothing giant.

In a research note, the British bank highlights 2023/2024 annual results in line with expectations, as well as a better-than-expected start to the 2024/2025 financial year.

The bank adds that the Group's stepped-up investments, whether in store optimization, the addition of new surfaces or the improvement of online platforms, constitute a supportive factor for the dossier over the long term.

With a P/E of 23.5x, the stock is trading at a level in line with its five-year average of 23x," he adds, pointing out that the stock's valuation has recently fluctuated between 17x and 30x.

According to HSBC, the next catalyst to look out for is the publication of the company's fiscal first-quarter results, scheduled for June 5.

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