While maintaining its 'hold' recommendation on Burberry, Stifel has cut its target price from 1050 to 800 pence, in the wake of a reduction in its operating profit projections for 2025 and 2026 by 68% and 42% respectively.

Earnings revisions still need to stabilize for the share to find a floor", warns the broker, following the change of CEO at the head of the British clothing house last week.

According to Stifel, the strategy to make Burberry a "more democratic and inclusive" brand should result in a "stronger entry-level offer, but in a context of authentic luxury".

Copyright (c) 2024 CercleFinance.com. All rights reserved.
The information and analyses published by Cercle Finance are intended solely as a decision-making aid for investors. Cercle Finance cannot be held responsible, directly or indirectly, for the use of information and analyses by readers. Uninformed investors are advised to consult a professional advisor before investing. This information does not constitute an invitation to sell or a solicitation to buy.