Burberry: Stifel maintains buy rating
(CercleFinance.com) - Stifel maintains its buy rating on Burberry shares, along with its target price of 2000p.
The announcement of the change in creative director, with Daniel Lee replacing Riccardo Tisci at the end of the month, is a significant moment, the broker says.
"Luxury investors are familiar with Daniel Lee, who successfully rejuvenated Bottega Veneta in 2018-20, so we believe that this change should be seen as a longterm positive for Burberry," the analyst believes.
Stifel says that the main negative is that "a change in creative director always creates some level of disruption for luxury brands, which may generate a temporary sales and margin impact for Burberry next year".
In summary, the analysis concludes, "Burberry clearly faces greater uncertainty at the company level than its peers, with so many internal changes".
The shares are actually down just over 1% as things stand - althouigh so is the London market.
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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 announcement of the change in creative director, with Daniel Lee replacing Riccardo Tisci at the end of the month, is a significant moment, the broker says.
"Luxury investors are familiar with Daniel Lee, who successfully rejuvenated Bottega Veneta in 2018-20, so we believe that this change should be seen as a longterm positive for Burberry," the analyst believes.
Stifel says that the main negative is that "a change in creative director always creates some level of disruption for luxury brands, which may generate a temporary sales and margin impact for Burberry next year".
In summary, the analysis concludes, "Burberry clearly faces greater uncertainty at the company level than its peers, with so many internal changes".
The shares are actually down just over 1% as things stand - althouigh so is the London market.
Copyright (c) 2022 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.