(CercleFinance.com) – Stifel reaffirms its ‘buy’ recommendation on Burberry, considering that “the recent weakness in the stock market price offers a good entry point” on the file, while lowering its price target from 2,600 to 2,520 pence .
The broker reduced its EBIT forecasts for the 2024 and 2025 financial years by 3%, solely due to unfavorable exchange rate variations since the end of April, but left its organic assumptions unchanged.
According to Stifel, ‘a higher marketing investment from the end of July should support the noise around the brand, before the arrival in stores of the new Daniel Lee collections in September’.
“Burberry offers an attractive ROIC and a compelling cash return profile, with its £400m share buyback program set to resume soon,” he adds.
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