Burberry: Oddo reduces target price
(CercleFinance.com) - Oddo BHF reinstates its "underperform" rating on Burberry shares, reducing its target price for them to 1,870 pence from 1,910 pence.
This suggests 12m upside potential of almost 20%.
While the group's valuation remains moderate in absolute terms, it should be noted that the 12-month upside potential for most other stocks in the sector, as suggested by analysts' target prices, is significantly higher, currently averaging over 30%.
Oddo explains that this lower upside potential reflects its cautious growth assumptions for the group beyond the next few years: it is expecting +5% p.a. in its model for Burberry, compared with a sector average of +7%/+9%.
Burberry shares are just about keeping afloat at noon.
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