Inditex (ITX:SM) (IDEXY) PT Raised to EUR47 at TelseyThe analyst commented: "Inditex's first quarter results were a bit of a mixed bag with both sales and gross margin falling short of expectations, while better-than-expected expense control made up the difference to deliver the modest earnings beat. After ten consecutive periods of impressive double-digit sales gains from 1Q21 through 2Q23, ITX has now seen sales slow to the high-single digit range in each of the past three quarters with the most challenging prior year compare ahead in Q2 (sales up 14% in 2Q23). That said, topline momentum has continued in Q2-to-date, demonstrating the strength of the company's global operating model. This, combined with tight inventory management, a quick and agile supply chain, and well-managed costs has helped ITX record operating margin expansion in six consecutive quarters. We continue to view Inditex as a best-in-class operator, outperforming peers with consistent global growth across regions and channels while driving greater sales productivity across a smaller store base. However, with persisting macro and inflationary pressures that weigh on ITX's exposure to a middle-income consumer and increasing competition across the global fashion space, including lower price fast fashion players, we maintain our Market Perform rating. On our slightly higher estimates, we raise our price target from €45 to €47, which assumes a 22.5x multiple on our two-year forward EPS estimate of €2.09, in-line with the five-year historical NTM average multiple of 22.6x."