december 1st2 Dec 2011 08:15
http://www.guardian.co.uk/business/marketforceslive/2011/dec/01/ftse-dips-burberry-bucks-trend
Posted by
Nick Fletcher
Thursday 1 December 2011 16.57 GMT
guardian.co.uk
Amidst all this luxury goods group Burberry stood out with a 38p rise to £13.08. The sector has been under pressure recently on worries about a slowdown in its key growth markets in Asia, a fear seemingly borne out by the contraction in China's manufacturing index in November.
But the company's shares were boosted by a buy recommendation from Seymour Pierce, which expects continuing growth despite the current uncertainty. Analyst Kate Calvert put a £16.50 price target on the shares, saying:
Unless there is a global depression, such is the Burberry brand momentum - which can be seen from its comparable sales growth, physical new space addition and operational leverage opportunities - that we believe the business can continue to deliver at least 20%-25% earnings per share growth per annum for the foreseeable future. This sustainable premium growth to its peers is not reflected in its current valuation. By SpikeyDT