Burberry share price: Kepler expects retailer to become more attractive brand

Analysts lift rating but trim valuation on luxury goods retailer

Burberry share price: Kepler expects retailer to become more attractive brand

Kepler Capital Markets has lifted its rating on Burberry (LON:BRBY), arguing that the retailer should become a more attractive brand in future, while noting that the market expectations are more reasonable on the fact that this will take several seasons, WebFG News reports. The comments came after the blue-chip group updated investors on its performance earlier this month, posting a fall in profit but reporting that the debut collection of its new chief creative officer had received ‘exceptional’ response.

Burberry’s share price has been steady in today’s trading, having gained 0.36 percent to 1,825.50p as of 14:21 GMT. The stock is outperforming the broader UK market, with the benchmark FTSE 100 index currently standing 0.37 percent lower at 6,934.69 points. The group’s shares added about 4.4 percent to their value over the past year, as compared with about a 6.6-percent dip in the Footsie.

Kepler weighs in on Burberry

Kepler lifted its rating on Burberry to ‘hold’ today, while trimming its valuation on the shares from 1,870p to 1,780p. WebFG News quoted the analysts as saying that they believed that the retailer’s management had “done a good job in insisting that turnaround stories take several quarters to occur,” which they feel is what has knocked the short-term recovery hopes out of the shares.

“We have little doubt that the brand will eventually become more attractive; the question is when,” they continued, adding that they expected brand momentum to remain unsettled for several months, and saw “only limited room for improvement, since it will take some time for the recent developments made by the company to pay off”.

Other analysts on FTSE 100 group

Jefferies reaffirmed Burberry as a ‘hold’ earlier this month, without specifying a price target on the shares. According to MarketBeat, the blue-chip group currently has a consensus ‘hold’ rating and an average price target of 2,003.94p.

As of 14:36 GMT, Friday, 23 November, Burberry Group plc share price is 1,839.50p.

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