Burberry: Oddo reduces target price

(CercleFinance.com) - Oddo maintains its "underperform" rating on Burberry shares, having reduced its corresponding target price from 1,800p to 1,750p.


The broker is cautious about the company's outlook, even though it has seen a slight improvement in Q2.

Analysts were expecting total retail growth of +5% in Q2 LFL, after +1% in Q1, although believe that the significant improvement seen in Asia means that they can now expect between +5% and +10% growth.

The broker considers the recent changes at the top of the group - in particular the appointment of Daniel Lee as the new creative director. Oddo also welcomes this desire to breathe new life into creation.

Nevertheless, it is not yet convinced that the performance can be improved to the point where the group can regain growth prospects that are in line with the soft luxury tenors over the long term.


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