Burberry (LON: BRBY) shares are up around 1.6% Friday after analysts lifted their price targets on the stock in reaction to its interim results reported on Thursday.
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The luxury fashion brand revealed that for the 26 weeks ended October 1, revenue rose 11% to £1.35 billion, or 5%, at constant exchange rates, while adjusted operating profit came in at £238 million, increasing 21%, or 6% at constant exchange rates.
The company also set a new medium-term target. Its shares closed 2% higher on Thursday.
RBC Capital raised its price target on the stock to 2,070p from 1,800p, maintaining a Sector Perform rating on the shares. The firm said in a research note that they see Burberry’s revised strategy, which was explained in its interim release, as “sensible,” with key focus areas largely in line with expectations.
The firm added that Burberry’s targets are “not hugely surprising,” and while they have belief in the £4 billion revenue target, RBC is “less confident” on EBIT margins significantly above 20%.
Elsewhere, Goldman Sachs maintained its Buy rating on Burberry shares but lifted its price target on the stock to 2,550p from 2,490p per share.
Meanwhile, Deutsche Bank and Jefferies both maintained their Hold ratings on Burberry. Deutsche Bank upped its price target on the stock to 2,200p per share from 1,950p, while Jefferies raised its price target on Burberry to 2,100p from 1,900p.
According to TipRanks, out of 11 analysts, three have assigned a Buy rating on Burberry shares, while eight have Hold ratings on the stock.