Deutsche Bank reiterated a Buy rating on Burberry Group (LSE:BRBY) after the luxury fashion group's first-quarter trading update
Pitched at 1,480p, the German bank's price target implies roughly 41% upside from the stock's last close of 1,049p.
DB analyst Adam Cochrane said comparable store sales rose 5%, matching both consensus and his own forecast, with the Americas up 12% and Greater China up 9% offsetting a 3% decline in EMEIA that included a 2 percentage-point hit from Middle East disruption.
Retail sales rose 5% to £455m, slightly below Deutsche Bank's £462m estimate which had assumed 6% comparable growth, as a 1% drop in retail space was offset by a 1% currency tailwind; Burberry also nudged its first-half wholesale guidance up to high single-digit growth from mid single-digit previously, while the currency headwind to earnings before interest and tax narrowed from an expected £10m hit to roughly flat.
Cochrane noted Burberry offered no explicit commentary on its full-year outlook or consensus expectations beyond reiterating it expects to "make further progress" on revenue growth and margin expansion, in line with prior guidance.
