Berenberg hiked its price target and earnings-per-share forecasts for Burberry (LON:BRBY), WebFG News reported yesterday. The move came after the luxury goods retailer reported last month that it had grown sales in the first three months of its financial year, while revealing that softer tourist demand had impacted its performance at home and in Continental Europe.
Burberry’s share price has advanced in London in today’s session, having added 1.07 percent to 2,274.00p as of 14:40 BST. The stock is outperforming the broader UK market, with the benchmark FTSE 100 index having slipped into the red and currently standing 0.29 percent lower at 7,620.40 points. The group’s shares have added a little more than 30 percent to their value over the past year, as compared with about a 3.7-percent gain in the Footsie.
Berenberg upbeat on Burberry
Berenberg, which sees Burberry as a ‘buy,’ boosted its price target on the shares from 2,250p to 2,350p, on the back of changes to their foreign exchange assumptions. WebFG News reports that the analysts further raised their forecasts for the luxury goods retailer’s earnings per share by four percent, five percent and five percent, in fiscal years 2019-2021, respectively. In the same research note, they also sounded a very positive note on the company's rebranding under its creative director, Riccardo Tisci.
The broker further reckons that under a ‘blue-sky’ scenario, the re-branding might see the shares' 'fair value' rise as high as 3,000p.
Other analysts on retailer
BNP Paribas, which sees Burberry as a ‘neutral,’ boosted its price target on the shares from 1,800p to 1,950p last week. According to MarketBeat, the luxury goods retailer currently has a consensus ‘hold’ rating and an average price target of 1,885.75p.