Burberry Group PLC (LSE:BRBY) is ‘navigating uncertain waters well’ said Deutsche Bank but it still cut its price target to 1,950p.
The broker, whose target price previously was 2,280p, added that the company’s brand strength has allowed it to pass on prices to consumers successfully.
According to Deutsche Bank, the “robust cash generation is supporting a £400mln share buyback” during next year.
As well as that, Burberry’s strategy at the moment appears to be investing the gains from its operation back into the business to “drive revenue growth.”
Despite all this, the broker did not budge on the group's weighting, maintaining its hold status.
This is largely due to uncertainty in the market, as analysts believe the shares will trade largely in line with the sector until there is more clarity on China and its strategic plan.