Burberry: Oddo BHF significantly raises TP
(CercleFinance.com) - Oddo BHF is maintaining its 'underperform' rating on Burberry, but is significantly raising its TP for the stock - by about a third - from 760 pence to 1000 pence.
The analyst points out that Q3 retail sales came in at £659m, down 3% cc and 4% LFL (Americas +4% Europe and MEA -2% Asia -9%), following a very sharp decline in Q2 to -20% comp (Americas -18% Europe and MEA -10%, Asia -28%).
Our forecast, in line with consensus, was for a decline in comp. of -12% (retail sales £600m, with growth by geographic zone of 0% in Europe and MEA, -10% in the Americas and -20% in Asia), the broker says.
Oddo BHF says that the brand's repositioning since the arrival of new CEO Joshua Schulman has clearly borne fruit during the end-of-year festive season, which seems to have been more favourable than expected for the sector as a whole, particularly in the US and Asia.
Against this backdrop, the broker now expects 'flat' retail growth for the next quarter (Q4), compared with -3% previously, while EBIT for the year to end-March 2025 is expected to be slightly positive at £11m, compared with -£6m previously.
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The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.
The information and analyses published by Cercle Finance are intended solely as a decision-making aid for investors. Cercle Finance cannot be held responsible, directly or indirectly, for the use of information and analyses by readers. Uninformed investors are advised to consult a professional advisor before investing. This information does not constitute an invitation to sell or a solicitation to buy.
The analyst points out that Q3 retail sales came in at £659m, down 3% cc and 4% LFL (Americas +4% Europe and MEA -2% Asia -9%), following a very sharp decline in Q2 to -20% comp (Americas -18% Europe and MEA -10%, Asia -28%).
Our forecast, in line with consensus, was for a decline in comp. of -12% (retail sales £600m, with growth by geographic zone of 0% in Europe and MEA, -10% in the Americas and -20% in Asia), the broker says.
Oddo BHF says that the brand's repositioning since the arrival of new CEO Joshua Schulman has clearly borne fruit during the end-of-year festive season, which seems to have been more favourable than expected for the sector as a whole, particularly in the US and Asia.
Against this backdrop, the broker now expects 'flat' retail growth for the next quarter (Q4), compared with -3% previously, while EBIT for the year to end-March 2025 is expected to be slightly positive at £11m, compared with -£6m previously.
Copyright (c) 2025 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.
The information and analyses published by Cercle Finance are intended solely as a decision-making aid for investors. Cercle Finance cannot be held responsible, directly or indirectly, for the use of information and analyses by readers. Uninformed investors are advised to consult a professional advisor before investing. This information does not constitute an invitation to sell or a solicitation to buy.