Morgan Stanley analyst Grace Smalley maintained a Hold rating on Burberry today and set a price target of p1,250.00.
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Grace Smalley has given her Hold rating due to a combination of factors influencing Burberry’s current and future performance. The company’s first-half results slightly exceeded expectations, with a modest increase in like-for-like sales and operating profit. However, despite this positive outcome, the forecast for the full fiscal year remains largely unchanged due to anticipated challenges such as tariff headwinds and increased marketing expenses in the second half.
While the quality of Burberry’s earnings has improved, and there is optimism about the company’s strategic execution, the upcoming festive season presents a tougher comparison base. The company will face challenges in maintaining growth due to last year’s significant discounting, which had provided a temporary boost. As a result, while the current trading environment appears stable, these factors contribute to a cautious outlook, justifying the Hold rating.
According to TipRanks, Smalley is an analyst with an average return of -5.1% and a 43.40% success rate. Smalley covers the Consumer Cyclical sector, focusing on stocks such as Pandora A/S, EssilorLuxottica SA, and Next plc.
In another report released on November 10, Telsey Advisory also maintained a Hold rating on the stock with a £14.00 price target.