Jefferies, the investment bank, has raised its price target for Burberry Group PLC (LSE:BRBY)'s stock to £24 per share from £21 while maintaining its "hold" recommendation.
The move follows Burberry's rebranding, show, and channel checks.
Jefferies believes that Burberry's show was more of an evolution than a revolution, and that press reviews have been positive, although social media reaction is unclear.
However, Jefferies is confident about Burberry's clear creative direction and strategic plan and has therefore raised its target multiple to 12x EV/EBIT, giving the £24 valuation.
For further target multiple expansion, Jefferies says that stronger social media momentum will be required.
The shares, up 11% in the year to date, were down 5%, hit by the market turmoil caused by the Silicon Valley Bank collapse.
They are currently changing hands for £22.30. Of the 22 banks and brokerages logged as following Burberry, 18 are in the Jefferies camp as holders. The consensus price target is £22.27.