MARKET TALK: C Stanley Raises Burberry EPS Estimate

16th Jul 2010 13:06

1206 GMT [Dow Jones] Charles Stanley raises its '12 EPS estimate for Burberry (BRBY.LN) by 6% to 47.7p to reflect the anticipated additional profit contribution from China, following the company's acquisition of its Chinese retail operations. Says the acquisition price of GBP70M appears reasonable. The agreement will enable Burberry to take full control of distribution in a country its management regards as one of the world's key growth luxury goods markets, the brokerage says. Adds the group is highly cash generative and while the stock's valuation represents a premium to the global luxury goods peer group, this is justified by superior earnings growth. Accumulate rating. Shares +2.4% at 810p. ([email protected]) Contact us in London. +44-20-7842-9464 [email protected] (END) Dow Jones Newswires July 16, 2010 08:06 ET (12:06 GMT)