Oddo BHF has reaffirmed its 'underperform' rating on Burberry, with a price target lowered from 1,250 to 1,100 pence, to reflect less favorable profitability assumptions in its DCF valuation.

Pointing to a difficult trend confirmed in Asia, it expects a very sharp decline in comparable retail for the fourth quarter to -13% (vs. -8% previously), and lowers its March 2024 EBIT by 7% (and by almost 10% for March 2025 and March 2026).

The research consultancy considers that Burberry's outlook remains difficult at this stage, between efforts in terms of costs and investments and a slowdown in the sector, and that 'the brand's place within the luxury/fashion universe is not solidly assured'.

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