Burberry Group PLC (LSE:BRBY) shares were up almost 4% after it featured as one of two upgrades in a note on the retail and luxury sectors by a leading investment bank.
Deutsche Bank is now a 'buyer' of the posh Mac maker, anticipating the brand will benefit from improved marketing efforts and a focus on core strengths, setting a target price of 1,180p, a potential 32% rise.
In afternoon trading, Burberry shares were changing hands for 934p, up 35.8p.
ABF, upgraded to 'hold' from 'sell', reflects the German bank's view that most downside risks are already factored into the current valuation.
However, its analysts remain cautious about headwinds such as rising costs in the UK, especially for Primark.
Other UK stocks feature prominently on Deutsche Bank’s preferred and least preferred lists. Marks and Spencer Group PLC (LSE:MKS) is highlighted as a top pick, benefiting from strong clothing sales, better international growth, and a healthy balance sheet.
In contrast, JD Sports Fashion PLC (LSE:JD.) is less favoured due to uncertain trading strategies, while Boohoo Group PLC (AIM:BOO) is singled out for its struggles with intense competition and squeezed margins in fast fashion.