Burberry Group (BRBY)

Sector:

Personal Goods

Index:

FTSE 100

1,797.50p
   
  • Change Today:
      13.00p
  • 52 Week High: 2,264.00
  • 52 Week Low: 1,356.00
  • Currency: UK Pounds
  • Shares Issued: 404.88m
  • Volume: 1,521,752
  • Market Cap: £7,278m
  • RiskGrade: 142

Goldman Sachs upgrades Burberry to 'buy'

By Michele Maatouk

Date: Friday 09 Jul 2021

LONDON (ShareCast) - (Sharecast News) - Goldman Sachs lifted its recommendation on shares of luxury fashion brand Burberry on Friday to 'buy' from 'neutral', pointing to a more attractive risk/reward profile.
The bank, which upped its price target to 2,475p from 2,135p, noted that Burberry has underperformed luxury peers materially - down 36% over the last 12 months and 44% over the last three years - as the brand has been undergoing significant change to elevate its positioning towards a more premium offer, adversely impacting volume.

"With the recent announcement that the CEO is stepping, we believe Burberry is at the finishing stages of its reset," it said.

"We think expectations are low for Burberry - our revised base case of 7% underlying sales growth per annum FY22-26 is conservative versus guidance (of high single digits medium term, using FY20 as the base year) and sees 17% upside to our fundamental discounted cash flow valuation (ex M&A component)."

GS said that in the event Burberry achieves its target, this would imply a DCF-based valuation nearer to 3,000p per share.

"On our revised earnings, Burberry trades on 13x CY22E adjusted EV/EBIT - a circa 40% discount to peers which looks unmerited in our view."

At 1030 BST, the shares were up 3.4% at 2,054p.

Email this article to a friend

or share it with one of these popular networks:


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 1,797.50p
Change Today 13.00p
% Change 0.73 %
52 Week High 2,264.00
52 Week Low 1,356.00
Volume 1,521,752
Shares Issued 404.88m
Market Cap £7,278m
RiskGrade 142

Burberry Group Star Ratings

Compare performance with the sector and the market.
more star ratings
Key: vs Market vs Sector
Value
6.05% below the market average6.05% below the market average6.05% below the market average6.05% below the market average6.05% below the market average
83.33% above the sector average83.33% above the sector average83.33% above the sector average83.33% above the sector average83.33% above the sector average
Price Trend
64.69% below the market average64.69% below the market average64.69% below the market average64.69% below the market average64.69% below the market average
86.67% below the sector average86.67% below the sector average86.67% below the sector average86.67% below the sector average86.67% below the sector average
Income Not Available
Growth
17.98% above the market average17.98% above the market average17.98% above the market average17.98% above the market average17.98% 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 7
Buy 0
Neutral 13
Sell 0
Strong Sell 1
Total 21
buy
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 17-Sep-2021

Time Volume / Share Price
16:37 1,022 @ 1,797.50p
16:35 857,734 @ 1,797.50p
16:29 1 @ 1,789.00p
16:29 2 @ 1,789.00p
16:29 24 @ 1,789.50p

Burberry Group Key Personnel

CEO Marco Gobbetti
Chair Gerry M Murphy

Top of Page