Burberry Group (BRBY)

Sector:

Personal Goods

Index:

FTSE 100

2,090.00p
   
  • Change Today:
      5.00p
  • 52 Week High: 2,264.00
  • 52 Week Low: 1,252.50
  • Currency: UK Pounds
  • Shares Issued: 404.87m
  • Volume: 610,751
  • Market Cap: £8,462m
  • RiskGrade: 142

Exane upgrades Burberry to 'outperform', shares rally

By Michele Maatouk

Date: Wednesday 02 Jun 2021

LONDON (ShareCast) - (Sharecast News) - Burberry rallied on Wednesday after Exane upgraded the shares to 'outperform' from 'neutral' and lifted the price target by 29% to 2,700p.
It noted that while all luxury stocks are now above their pre Covid-19 levels, Burberry is still 8% below its January 2020 peak of 2,329p and trading at around a 30% discount to peers.

"We believe the discount in valuation is currently pricing in that Burberry i) will take much longer to recover from Covid-19 than peers and/or ii) is structurally a weaker brand," Exane said. "We disagree on both assumptions and find sell side and investor sentiment too bearish."

Notably, the market has focused on the short-term negative impact of Burberry's conscious decision to reduce markdown to its top-line rather than the long-term positive impact to its brand image and gross margin, Exane said.

The bank also said the company's transformation is not priced in. It pointed out that since the pandemic started, apart from the third quarter ending December 2020, Burberry has posted better-than-expected sales.

"Burberry's strategic transformation is on track and we believe its medium-term objective to grow revenues at a high single-digit compound annual growth rate and reach an EBIT margin of at least 20% are realistic," Exane said.

At 1330 BST, the shares were up 4% at 2,194p.

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Note 1: Prices and trades are provided by Digital Look Corporate Solutions and are delayed by at least 15 minutes.

Note 2: RiskGrade figures are provided by RiskMetrics.

 

Burberry Group Market Data

Currency UK Pounds
Share Price 2,090.00p
Change Today 5.00p
% Change 0.24 %
52 Week High 2,264.00
52 Week Low 1,252.50
Volume 610,751
Shares Issued 404.87m
Market Cap £8,462m
RiskGrade 142

Burberry Group Star Ratings

Compare performance with the sector and the market.
more star ratings
Key: vs Market vs Sector
Value
39.23% below the market average39.23% below the market average39.23% below the market average39.23% below the market average39.23% below the market average
80.00% above the sector average80.00% above the sector average80.00% above the sector average80.00% above the sector average80.00% above the sector average
Price Trend
28.86% above the market average28.86% above the market average28.86% above the market average28.86% above the market average28.86% above the market average
6.67% above the sector average6.67% above the sector average6.67% above the sector average6.67% above the sector average6.67% above the sector average
Income
13.99% below the market average13.99% below the market average13.99% below the market average13.99% below the market average13.99% below the market average
100.00% above the sector average100.00% above the sector average100.00% above the sector average100.00% above the sector average100.00% above the sector average
Growth
18.71% above the market average18.71% above the market average18.71% above the market average18.71% above the market average18.71% above the market average
53.85% above the sector average53.85% above the sector average53.85% above the sector average53.85% above the sector average53.85% above the sector average

What The Brokers Say

Strong Buy 6
Buy 1
Neutral 13
Sell 0
Strong Sell 2
Total 22
neutral
Broker recommendations should not be taken as investment advice, and are provided by the authorised brokers listed on this page.

Burberry Group Dividends

  Latest Previous
  Final Interim
Ex-Div 01-Jul-21 19-Dec-19
Paid 06-Aug-21 31-Jan-20
Amount 42.50p 11.30p

Trades for 28-Jul-2021

Time Volume / Share Price
16:35 809 @ 2,090.00p
16:35 267,094 @ 2,090.00p
16:29 2 @ 2,094.00p
16:29 2 @ 2,094.00p
16:29 2 @ 2,094.00p

Burberry Group Key Personnel

CEO Marco Gobbetti
Chair Gerry M Murphy

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