Broker snap: Credit Suisse expects strong quarter for Burberry

8th Jul 2011 12:43

Credit Suisse kept its neutral rating and 1,310p target price for luxury brand Burberry, despite expecting the group to report another strong quarter on 13 July.The broker forecasts sales of £342m for the first quarter, an increase of 23% on the same quarter the year before. This figure will be driven by a 34% underlying rise in retail, 9% underlying increase in wholesale and a 5% underlying improvement in licensing."Risks to forecasts probably skewed to the upside following continued positive bottom-up sector data for the month of June - from US high-end department store comps to credit card luxury spending to pre-announcement of better than previously anticipated 2Q from the likes of [Phillips-Van Heusen]," said analyst Rogerio Fujimori.However, following a 20% rise in the share price over the last three months, the broker maintained its neutral stance.BC