Burberry’s (LON:BRBY) surprise boardroom change yesterday gets plaudits from UBS, which has kept its ‘buy’ stance on the luxury goods supplier.
Youthful chief executive Christopher Bailey is being moved into a creative role, with the harder-bitten Marco Gobbetti coming in as chief executive.
He was previously chairman and chief executive of Céline in a 20-year career that includes 10 years at French group LVMH.
Julie Brown will become chief operating and financial officer. Brown has been CFO at Smith & Nephew since 2013.
UBS argues that investor scepticism on Bailey’s ability to execute retail improvements and cost savings has meant the potential benefit from the restructuring announced in May being overlooked.
But the new chief executive will spearhead this programme while Bailey's sole focus on creative things should help to drive the product that is key for the brand's success.
The broker’s price target is 1,700p
UBS also ups its view on broadcaster ITV (LON:ITV) even though the EU Referendum result may knock 2017 earnings by 19%.
The rating now is ‘neutral’, having been a ‘sell’ previously, with a price target of 170p (195p previously).
Macquarie has upgraded diamond miner Firestone Diamonds (LON;FDI) to 'outperform' from 'neutral' following a visit to its 75%-owned Liqhobong project in Lesotho.
“Production appears imminent at the mine, with construction 85% complete as of end of June and US$6-8mln below its planned US$185mln budget. The target price is 45p.
Faroe Petroleum (LON:FPM) also gets an upgrade from the Aussie broker, which says the Brasse well is hugely significant and adds 30mln barrels of 2C resource to its net asset value estimate. ‘Outperform’ is the new rating with a 90p target.
Panmure Gordon has repeated its ‘conviction buy’ view on hay fever vaccine specialist Allergy Therapeutics (LON:AGY).
The recent announcement of additional dose-ranging work before its grass pollen phase III trial can get underway in the US will add 12 months to the development programme, but it’s a minor diversion says the broker, which has a price target of 53p.
Panmure Gordon has also restated coverage of Diamondcorp (LON:DCP) with a ‘buy’ and new target price of 11.5p.