Burberry: Credit Suisse upgrades share
(CercleFinance.com) - This morning Credit Suiss has upgraded its rating on the Burberry share, now recommending investors buy it ("outperform" rating).
Macroeconomic conditions are becoming less favourable and the demand for luxury goods is slowing down. Analysts hence say that it's the right time to invest in groups in turnaround situations, such as Burberry.
Credit Suisse estimates that new collections will represent the majority of Q2 sales (Burberry's Q2 is from July to September) of FY 2019/2020, which should lead to an acceleration in organic growth from 4% in Q1 to 6% in Q2. More optimistic than the consensus, Credit Suisse has raised its comparable growth projections for FY 2020/2021 and FY 2021/2022 from +6% to +8%, which should improve its margins.
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