Burberry could deliver fourth-quarter revenue growth ahead of the sector average, said analysts at the Royal Bank of Canada (TSX:RY).
RBC hiked the target price to 2,400p from 2,200p, while retaining a 'sector perform' rating on the stock.
The broker believes it could achieve 14% growth compared to the sector average of 9% which, if delivered, “could mark an important milestone.”
Underlying improvements in the Asia Pacific market supported by China's reopening and momentum in South Korea and Japan, coupled with the EMEIA region continuing to benefit from local and inbound tourism, should aid revenue growth.
Demand in the Americas, however, is expected to remain subdued, according to the broker.
Across European luxury retailers, Burberry alongside Gucci, which is owned by Kering, is expected to “deliver an accelerating two-year stack revenue growth rate.”