Inditex returns to the center of attention after months of erratic behavior on the stock market. The Galician company rebounded by 11% in December and is trading again around historic highs, around 56 euros per sharewhich places it among the most bullish values of the Ibex in the latter part of the year. The market rewards the group’s operational solidity, its cash generation and its margins which, according to several analysts, continue to demonstrate resilience despite the slowdown in consumption in Europe and They can continue to surprise in 2026.
The gathering of recent weeks coincides with a general upward revision of target prices. Entities like bank of AmericaGoldman Sachs, Deutsche Bank and Barclays raised their valuations. Some of these companies already place the potential above 60 euros per share, which implies a market capitalization of more than 180 billion and consolidates Inditex as the largest company listed on the Spanish market, by far.
In its latest results, the textile group exceeded expectations, strengthened its financial situation and showed its ability to continue its growth despite the context of weak European consumption. The market welcomed the increase in margins, improvement in comparable sales and balance sheet strength. Net cash exceeds 11 billion and the dividend policy remains one of the most attractive on the Ibex, with a distribution of 60% of profit.
At the operational level, Inditex continues to advance in logistics efficiency and digitalization. Its economic model, focused on the speed of collections, global scale and total control of the chain, once again stands out from its European and American peers. The direction of Óscar García Maceiras consolidated the transition after the departure of Pablo Isla and the arrival of Marta Ortega as president, without strategic surprises and with a message of continuity well received by the market.
While its competitors take up to six months to transfer a trend from the runway to the store, Inditex does it in three weeks. This “living fashion” model or ultra fast fashionas it is called internally, allows us to maintain competitive prices and operating margins typical of the luxury sector. The group achieves gross margins above 56% and a capital return of 33%, figures that only you sign as Hermes or LVMH can match.
Zara, the group’s locomotive, generates more than 70% of revenuesbut she is not alone. Pull and bearStradivarius, Bershka, Oysho and Massimo Dutti also have strategic roles and global penetration. This diversification of brands, combined with its geographic expansion (the United States is already its second largest market), allows Inditex to maintain aa resilient position in the face of regional economic shocks.
Inditex strengthens its institutional portfolios
Market consensus once again places Inditex among the candidates to lead the Ibex next year in a more selective and less banked environment. In this context, The stock is also gaining in attractiveness in institutional portfolios who are looking for a rotation towards values with visibility, moderate growth and low exposure to the cycle. Large international managers have slightly increased their exposure to value, according to Bloomberg data, to the detriment of sectors with a shorter route after the 2025 rally.
Inditex is one of the main portfolios recommended by Renta 4, CaixaBank Private Banking and Bank SabadelI. He also appears in the defensive selections of black rock by 2026, as one of the European names with the best risk-return profile.
Antonio Castelo, analyst iBrokerbelieve that, After such a vertical year for the ibex, the market is entering a phase of greater selectivity. “We are not at a definitive ceiling, but yes in an area where the profitability pair–the risk is no longer as comfortable,” he emphasizes.
In this scenario, stocks like Inditex, with net cash flow, earnings visibility and low leverage, gain attractiveness. »
According to him, the investment logic now consists of moving towards values with global income and sustainable margins, rather than betting on a new upward branch of the block index. “In this scenario, values like Inditexwith net cash, profit visibility and low leverage, gain in attractiveness“, he adds.
The challenge will now be to maintain the tone in a year which promises to be flatter for the European indices. Profit growth in the sector retail will depend largely on the evolution of consumption in the United States, stabilization in China and cost control logistics. In the short term, the evolution of the euro against the dollar and future inflation data could set the tone for securities with strong international exposure such as Inditex.
With a dividend yield close to 4% and a PER still lower than its historical average restated for growth, Inditex faces 2026 with renewed arguments to regain its leadership in the ibexthis time without depending on a bank rally.
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