Barclays and Bank of America raise Inditex's share price target

Madrid – Adding to the recent series of analyst recommendations on Inditex and its business model, British financial institution Barclays has issued a new report. The report assesses the strengths and potential of the Spanish fashion multinational. The company is expected to perform remarkably well both on and off the stock market. Consequently, Barclays has decided to raise its price target for Inditex shares, which have seen their trading value soar in response.

Financial media and platforms such as MarketScreener, Investing, Expansión, and Cinco Días reported this past Monday that the British financial services group Barclays has issued a new equity research report on Inditex. The report is restricted to the financial institution's institutional clients. As key highlights, Barclays has upgraded its recommendation on Inditex shares from “hold” to “overweight,” or buy. The bank has also raised its price target for the shares from 56 to 62.50 euros per share.

According to reports from the aforementioned financial media, the report, reportedly signed by British financial institution analyst Matthew Clements, highlights the company's key strengths. These include its ability to pass on increased costs to the final price of its products without affecting customer demand and its efficient inventory management. These are two competitive advantages over other companies in the sector. Barclays is confident that these strengths, combined with improved productivity that will offset wage and rent costs, will lead to improved profitability in the coming years.

From luxury's decline to Ozempic's rise

Additionally, the British financial institution points to two issues that are collateral and external to the Spanish fashion multinational's own dynamics. Nevertheless, they have the potential to positively influence its future performance. Barclays anticipates that these returns could exceed market expectations. This is partly due to the decline in luxury goods consumption and partly to the rise of diabetes and obesity drugs in the US.

Barclays identifies a factor with clear potential to continue driving the Spanish fashion multinational's revenue and profits to new highs. This factor is the growing and persistent inflationary pressures. These pressures, combined with the price hike policies adopted by major luxury companies, have put their brands out of reach for a growing number of consumers. Barclays believes that Inditex, particularly its main commercial brand Zara, is well-positioned to capitalise on this gap. It can occupy the space that has widened between the aspirational image luxury brands project and the economic reality of consumers. The creative alliance established between Zara and the Gibraltarian designer John Galliano is expected to play a decisive role in this potential, a point previously highlighted by FashionUnited.

Regarding the second factor, the British bank notes that the increasing use of obesity and diabetes drugs in the US, such as Wegovy, Mounjaro, and the particularly popular Ozempic, also presents additional growth potential for Inditex. The US is a key market for the company. The Spanish company currently has physical stores for its Zara and Massimo Dutti chains there. It is also scheduled to open the first Bershka stores, one of its main young fashion brands, in the country this year. Barclays estimates that these chains could benefit from the wave of “wardrobe renewals” prompted by these new medications.

Growth forecasts for the first half of the year

Following the publication of its results for the first quarter of 2026 on June 3, Inditex is scheduled to report its first-half results on September 9. This period will include performance from May to July. Inditex began this period with +11.5 percent growth recorded between May 1 and June 1. Barclays expects the company to close the period in line with the first quarter, with +8.8 percent growth at constant exchange rates.

Shares pushed upwards, heading for new highs

As a result of this latest analysis by the financial institution, Inditex shares rose by +1.87 percent this past Monday. They increased from 54.46 euros per share at the close of trading on Friday, July 24, to 55.48 euros (63.05 dollars) at the close of trading this past Monday, July 27. The value has continued to rise, currently trading at 56.30 euros. This is +3.37 percent higher than the 54.46 euros at which Inditex shares were trading before the Barclays report.

Putting this into a broader perspective, the report follows a similarly positive valuation update from Bank of America just a week ago. Bank of America raised its price target for Inditex shares from 62 to 65 euros. This valuation, along with the current one from Barclays, has pushed the Spanish company's shares higher. At 56.30 euros, they are trading +4.76 percent above the 53.74 euros at which they closed on Friday, July 17. This amount is still -0.35 percent below the 56.50 euros at which Inditex shares started the year. However, it is +30.62 percent above the 43.10 euros at which they were trading on July 29, 2025, approaching the all-time high of 58.28 euros per share reached on February 19, 2026.