Burberry: Oddo BHF lowers target price

(CercleFinance.com) - Oddo BHF maintains its "underperform" rating on Burberry shares, reflecting its scepticism about the franchise's ability to capture the sector's momentum on a sustainable basis, therefore reducing its target price for them to 2,220p (from 2,280p).


From the previous day's annual results, the broker notes that the group is suffering the full force of the slowdown in the US, where it had largely developed in fairly aspirational products and where it remains exposed to the wholesale channel of department stores.

The analyst says that this publication shows a rebound for the British luxury house in mainland China somewhat below that observed by its peers. These factors have prompted him to remain cautious regarding the stock's outlook, and as a result is lowering corresponding earnings estimates.


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