Broker targets around £12 all Holds11 Sep 2012 17:56
Nomura lowered its recommendation from 'buy' to 'hold' and reduced its target price from 1,450p to 1,210p after lowering its forecasts: current-year and forward PBT estimates were cut by 4% and 6%, respectively.
The broker said that the 'deceleration" was a "global phenomenon”, primarily driven by lower traffic.
"Delivery on margin growth, merchandising initiatives and continued prospects for double-digit space at high returns are the reasons to own the shares long term, in our view. However, with very limited near-term visibility, we lower our rating."
Meanwhile, Seymour Pierce has cut its rating from 'buy' to 'hold' and cut its target price from 1,700p to 1,200p after slashing its current-year and forward PBT forecasts by 12% and 15%, respectively.
The broker said this afternoon: “Today’s share price fall is disproportionate to the downgrade given the recent de-rating. However, the lack of demand visibility on whether this is a blip or worse to come will impact sentiment short term so we downgrade our recommendation to ‘hold’ (‘buy’ since 3 December 2010). A clearer outlook would make us more positive again as we still consider Burberry to be a great long term growth story.
Investec cut its ‘buy’ recommendation to 'hold' and reduced its target price from 1,640p to just 1,140p, saying that it has cut its current-year and forward PBT forecasts by 11% and 18%, respectively.
"We remain long-term fans of Burberry, and would not recommend selling the shares at this level, but, until more information is known, nor can we recommend buying here."
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