Broker snap: Burberry estimates upped to reflect guidance

20th Apr 2011 11:48

UBS raises its numbers for luxury fashion brand Burberry after a bullish conference call that suggested another strong year ahead."Management hosted a very confident conference call, signing off on a strong fiscal year 2011 as underlying top-line growth amounted to +24%, driving by broad-based performance by channel and region," said analyst Eva Quiroga.The broker expects another year of solid underlying top-line growth heading into 2012: retail is said to benefit from a 12-13% increase in selling space and continued momentum from the Chinese business; mid-teens growth expected in wholesale in the first half; and licenses are predicted to grow in mid-single digits.Driven by an estimated 2% beat to its 2011 forecasts - and reflecting some operating leverage - the broker ups its adjusted pre-tax profit estimates for 2011 by 3% to £300m, "broadly in line with management's comments that numbers will be at the high of consensus," said Quiroga.Reflecting these increases, the broker raises its target price to 1,200p, from 1,150p, and keeps its 'buy' rating.---bc