Analysts at Deutsche Bank have raised their target price for luxury goods firm Burberry Group PLC (LON:BRBY) ahead of a trading update from the firm scheduled for next week.
In a note to clients, the analysts upped their target to 1,650p, from 1,525p previously, while repeating a ‘hold’ rating on the stock.
In early morning trading, Burberry’s FTSE 100-listed shares added 0.6%, or 10p at 1,778p.
The Deutsche Bank analysts noted that Burberry will report its second-half sales figures on Wednesday, April 19, when it is forecasting that the group should reveal comparable store retail sales growth of +6%.
Industry data improving …
They pointed out: “Industry data has been improving since the middle of 2016, driven by improving trends in Greater China and more modest improvements in Europe."
The analysts noted that the strong sales performance, announced yesterday, by market leader, France's LVMH SA increases the upside risk for Burberry's sales.
They said the price target hike reflects adjustments to forecasts for slightly less positive currency rates and the announced Beauty licensing agreement with Coty from the second half of 2018, a deal which they added they welcome.