Burberry: Credit Suisse adjusts forecasts

(CercleFinance.com) - Credit Suisse has confirmed its outperform recommendation on the Burberry stock, with a target price of 1,700p.


The broker has adjusted its LFL forecasts for 2021e to -10%, with an adjusted operating profit of 310 million pounds.

"Our sales estimates are ahead of consensus but still imply further market share losses in luxury fashion... In addition, a high exposure to Chinese consumers at c.40% of sales is an advantage relative to peers," Crédit Suisse said.

"In the medium-term, we expect management will be able to manage costs to leave FY23e operating margin similar to pre-crisis levels while investing in the brand," the broker added.


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