Burberry "neutral," target price raised

04/18/07 - J.P. Morgan Securities

LONDON, April 18 (newratings.com) - Analysts at JP Morgan maintain their "neutral" rating on Burberry Group Plc (BB2), while revising their estimates for the company. The target price has been raised from 660p to 680p.

In a research note published this morning, the analysts mention that the company has reported its 2H07 sales growth ahead of the estimates and the consensus. Burberry’s initial healthy sales guidance for FY08 is offset by higher-than-expected FY08 cost guidance for the company’s Atlas division and greater-than-anticipated impact of unfavourable currency effects, the analysts says. The upward revision in the target price reflects a lower share count. The EPS estimate for 2007 has been raised from 24.3p to 24.2p. The EPS estimate for 2008 has been reduced from 32.0p to 32.3p.