Burberry: UBS lowers target price

(CercleFinance.com) - UBS reiterates its sell recommendation on the stock and lowers its target price to 490 pence (from 720 pence), the day after the British luxury goods company announced a change of CEO and a profit warning.
Its TP suggest 34% downside potential for the stock.

Burberry has just published its first-quarter sales ahead of schedule, which were due to be released on Friday this week. Q1 retail sales of £458m were 6% below the forecast of £486m and the UBS forecast of £489m, down 21% LFL (against a consensus of -16% and UBS' forecast of -14%), the broker says.

Q1 results include a major profit warning and the departure of the CEO. In the context of the ongoing restructuring and the absence of a clear strategy, we believe the share should be sold with a revised target of 490 pence' UBS adds.


Copyright (c) 2024 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.