RBC upgrades H&M, cuts Inditex
** RBC upgrades H&M HMb.ST seeing several sources of upside for the world's second-largest listed fashion retailer, while it cuts No.1 Inditex ITX.MC
** H&Ms'stock rises 2%, Inditex is up 0.4%
** RBC sees further gross margin upside and potential for more costs savings for H&M, upgrading the stock to "outperform" from "sector perform"
** It also notes that a more competitive product offer should enable it to show a further improvement in sales
** On the other hand, it says Inditex is less leveraged to favourable FX in H1 and falling raw material prices, such as cotton, than H&M and Primark
** It cuts Inditex to "sector perform" from "outperform", also saying that sales comparables now become tougher, partly due to consistently strong trends last year in its home market Spain or Mexico
Reporting by Anna Chaberska, Jakub Olesiuk
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