Burberry: Credit Suisse upgrades share
(CercleFinance.com) - This morning Credit Suiss has upgraded its rating on the Burberry share, now recommending investors buy it ("outperform" rating).
Macroeconomic conditions are becoming less favourable and the demand for luxury goods is slowing down. Analysts hence say that it's the right time to invest in groups in turnaround situations, such as Burberry.
Credit Suisse estimates that new collections will represent the majority of Q2 sales (Burberry's Q2 is from July to September) of FY 2019/2020, which should lead to an acceleration in organic growth from 4% in Q1 to 6% in Q2. More optimistic than the consensus, Credit Suisse has raised its comparable growth projections for FY 2020/2021 and FY 2021/2022 from +6% to +8%, which should improve its margins.
Copyright (c) 2019 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.
Macroeconomic conditions are becoming less favourable and the demand for luxury goods is slowing down. Analysts hence say that it's the right time to invest in groups in turnaround situations, such as Burberry.
Credit Suisse estimates that new collections will represent the majority of Q2 sales (Burberry's Q2 is from July to September) of FY 2019/2020, which should lead to an acceleration in organic growth from 4% in Q1 to 6% in Q2. More optimistic than the consensus, Credit Suisse has raised its comparable growth projections for FY 2020/2021 and FY 2021/2022 from +6% to +8%, which should improve its margins.
Copyright (c) 2019 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.