Europe should have driven Burberry Group Plc’s (LON:BRBY) growth in its third quarter trading update, released on Wednesday, so says Haitong Research.
Carole Madjo, in a note, said: “We expect Burberry’s Q3 trading update (to be released tomorrow before the market) to show similar trends to Q2: Europe should drive growth, boosted by the UK while other regions should remain challenging.
“We expect Mainland China to maintain its good momentum but we remain cautious regarding the performance of Chinese tourists.”
Quarterly retail sales should amount to £717mln, according to Madjo, who also notes that the broker’s full year profit before tax forecast is £443mln.
Haitong has a ‘neutral’ rating for Burberry and gives the luxury brand a fair value of £14.15 per share.
“Burberry’s share price has risen significantly in the last 3 months (+7%) due to M&A speculation and to the positive momentum of the luxury goods sector that should benefit from a recovery in demand in 2017,” Madjo added.
Wednesday's agenda
Ladbrokes Coral Group PLC (LON:LCL), J D Wetherspoon PLC (LON:JDW), Hochschild Mining PLC (LON:HOC), Burberry Group PLC (LON:BRBY), Experian PLC (LON:EXPN), Diploma PLC (LON:DPLM), NewRiver Retail Ltd (LON:NRR).