Broker snap: Burberry momentum already priced in

6th Apr 2011 11:06

Nomura keeps its 'neutral' rating on luxury brand Burberry, as it thinks that strong momentum is already priced into the shares.The Japanese broker expects the trading update on 19 April to show a 36% increase in second half retail sales and a 4% rise in wholesale sales, "slower than the third quarter given timing of deliveries," the broker said."Overall retail growth, mainline stores, outerwear, non-apparel and monthly flow should drive the gross margin mix."The broker says that Burberry continues to deliver on all points of its strategy and anticipates the update to mark a "great close to a vintage year." However, with strong growth already assumed, Nomura keep its target price of 1,200p.---bc