(CercleFinance.com) – The stock ended the day up nearly 3% on the London Stock Exchange after yesterday’s gain of 1.6% following the announcement of results for the six-month period ending on October 1, 2022. Several analysts gave an update on the stock following this announcement.
Stifel reiterates its ‘buy’ recommendation on Burberry with a price target raised from 2,000 to 2,200 pence, in the wake of operating profit estimates raised by 3% and 5% for the 2023 and 2024 financial years of the British luxury house.
The broker highlights an overrun of expectations in the first half of the year, a well-received strategic point from new CEO Jonathan Akeroyd and the prospects of increased brand appeal with new creative director Daniel Lee.
“The title is not among our favorite stocks in the sector, but it offers interesting potential for autonomous growth under its new management which can build on the hard work done in recent years,” said Stifel.
UBS confirms for its part its neutral advice on the value with a price target of 1838 pence. The analyst believes that the quarter is broadly in line with expectations.
Q2 LFL retail sales were up +11%, better than +8% forecast (UBSe +9%). H1 adjusted EBIT was £238 million vs. £234 million (UBSe 233 million), with an adjusted EBIT margin of 17.7% in line with guidance (UBSe 17, 3%)’ says UBS.
Burberry said it had set a new medium-term target, targeting sales of £4 billion at constant exchange rates, with high single-digit growth.
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