- Burberry Group
- 26 September 2023 13:04:37
Source: Sharecast
DB cut the price target to 2,200p from 2,240p, saying it’s more cautious on trends in China and in the US and is struggling to see earnings momentum.
"With less inbound travel into Europe and weaker domestic consumer the EMEIA region looks to have finally cracked as well," Deutsche said.
The bank, which rates the shares at ‘hold’, lowered its FY24 adjusted EBIT estimate by 2% to £605m.
Meanwhile, Morgan Stanley reduced the price target to 2,200p from 2,400p.
The bank said it was lowering tis 2Q24 like-for-like sales growth estimate to 4% from 7% as it accounts for "softening global demand and heightened macro pressure". It also cuts its FY24 EBIT estimate by 2% to £608m.
MS, which rates Burberry at equalweight, said there is a potentially attractive recovery story.
"The successful implementation of Burberry's repositioning strategy could represent an attractive long-term proposition," it said. However, it still sees earnings risks ahead.
"With much smaller exposure than peers to evergreen products, resilient categories (such as leather goods) and ultra-premium categories, we think Burberry will most likely continue to lag best-in-class peers," it said.