Burberry’s Biggest Bear Sees Luxury Stock Falling to 2010 Levels
- Oops!Something went wrong.Please try again later.
- Oops!Something went wrong.Please try again later.
- BRBY.L
- BURBY
(Bloomberg) -- Burberry Group Plc’s biggest bear just became even more negative on the stock following Wednesday’s lackluster results from the British luxury firm.
Most Read from Bloomberg
US Inflation Data Was Accidentally Released 30 Minutes Early
Putin and Xi Vow to Step Up Fight to Counter US ‘Containment’
Jamie Dimon Sees ‘Lot of Inflationary Forces in Front of Us’
Dow Average Is Trading Near Historic 40,000 Mark: Markets Wrap
Slovak Premier Fighting for Life After Assassination Attempt
UBS Group AG analyst Zuzanna Pusz cut her price target to 750 pence from 971 pence, implying a decline of a third in the stock over the next 12 months, to what would be the lowest since 2010.
“The likelihood of a successful Burberry turnaround is limited in the near term,” Pusz wrote in a note on Thursday, reiterating her sell recommendation.
The analyst pointed to Burberry’s commentary on current trading, weak wholesale guidance for the first half of the current fiscal year, as well as a continued focus on cutting costs, rather than investment.
The British group’s shares fell more than 7% on Wednesday after it warned of a challenging first half as soft demand in China and the US cause a drop in sales. A revamp of the business is yet to yield results, with the shares down about 20% year-to-date following a surprise profit warning.
Pusz turned bearish on Burberry in October after being neutral-rated on the stock for almost two years. Overall, Burberry has only two buy ratings, along with 17 holds and four sells, according to data compiled by Bloomberg.
Most Read from Bloomberg Businessweek
©2024 Bloomberg L.P.