MARKET TALK: Burberry 1Q Update Strong - Charles Stanley

13th Jul 2010 14:16

1316 GMT [Dow Jones] Burberry's (BRBY.LN) 1Q update is strong, with total sales up 30% to GBP282M, says Charles Stanley. Notes outlook comments were upbeat, management saying the Burberry brand has such momentum it should continue to outperform irrespective of the economic backdrop. Brokerage says the shares are trading at a premium to the global luxury goods peer group, but this is justified by superior forecast earnings growth. Notes Burberry is highly cash generative with net cash on the balance sheet. The valuation looks well up with events, "but we would add to holdings on any signs of sustained profit taking." Accumulate rating. Shares +1.6% at 802p. ([email protected]) Contact us in London. +44-20-7842-9464 [email protected] (END) Dow Jones Newswires July 13, 2010 09:16 ET (13:16 GMT)