Burberry: Oddo raises target price

(CercleFinance.com) - Oddo maintains its Underperform rating on Burberry shares, although has increased its target price for them from 2030p to 2130p, mainly reflecting the year-on-year effect in the DCF valuation.


The broker says that Burberry reported Q3 (Q4 calendar) retail sales of 756 million pounds, flat at constant exchange rates, and up 1% LFL (after +11% in Q2 and +1% in Q1).

Against this backdrop, Oddo has reduced its FY23 sales forecast by almost 2% to reflect a slightly lower Q3 and a less favourable than expected currency effect in Q4, with the revision to EBIT not exceeding -1%.

The analyst has also trimmed EBIT estimates for FY23/24/25 by 1%.


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