Burberry: UBS upgrades stock
(CercleFinance.com) - On Monday UBS upgraded its rating on Burberry shares from "sell" to "neutral", while trimming its target price for them from 1,861 pence to 1,800 pence.
The broker remains cautious about the ongoing turnaround of the British luxury goods company, although highlights a more balanced risk/reward profile at current prices, with a discount that has now reached "historic" levels compared to its peers.
This unprecedented discount could attract interest from potential buyers, UBS says, while the upcoming appointment of a new CEO could act as a catalyst.
In short, the analyst says that he was a seller of the stock since the beginning of 2020, due to a performance that is deemed too weak in the midst of the recovery plan and a major investment efforts to revitalise sales.
The share is just afloat in London (+0.3% as noon approaches), slightly outperforming a lat market.
Copyright (c) 2021 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.
The broker remains cautious about the ongoing turnaround of the British luxury goods company, although highlights a more balanced risk/reward profile at current prices, with a discount that has now reached "historic" levels compared to its peers.
This unprecedented discount could attract interest from potential buyers, UBS says, while the upcoming appointment of a new CEO could act as a catalyst.
In short, the analyst says that he was a seller of the stock since the beginning of 2020, due to a performance that is deemed too weak in the midst of the recovery plan and a major investment efforts to revitalise sales.
The share is just afloat in London (+0.3% as noon approaches), slightly outperforming a lat market.
Copyright (c) 2021 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.