(CercleFinance.com) – While reiterating its ‘hold’ recommendation on Burberry, Stifel reduces its price target from 1,300 pence to 1,150 pence, in the wake of EBIT estimates lowered by 18% for 2025 and 10% for 2026 , after the publication of the results for the 2024 financial year.
The broker points to a ‘difficult external picture which has seriously complicated the creative transition’ of the British luxury group, as well as ‘painful operational leverage which has led to significant pressure on margins’.
If the stock trades at depressed multiples, Stifel believes that it ‘should not revalue until management provides evidence of re-acceleration in sales growth and visibility on results improves’.
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