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Shares in Burberry rose 10p yesterday after analysts at Liberum Capital started coverage on the luxury goods firm with a “buy” rating and 1,535p12-month price target.

The shares closed at 1277.2p last night.

Analysts at Liberum said in a note: “Burberry has reached an inflexion point. After more than a decade of restructuring, the cost of sorting out legacy issues and investment in a growth platform, is set to fade as both sales and margins accelerate.”

The broker said that although it is cautious on the macro environment, it forecasts average earnings per share growth of 20 per cent from Burberry over the next four years, versus 17.5 per cent over the past five years.

Burberry is to stick with ambitious expansion plans, saying demand in top cities like Hong Kong, London and New York will prove resilient in any downturn.

The group makes 60 per cent of its retail revenues in 25 cities that are home to the world’s wealthiest individuals and attract high numbers of tourists.

Burberry’s iconic trench coats are made at the company manufacturing base in Castleford.