Nomura reiterates "buy" on BurberryWednesday, 18 January 2012
The FashionUnited Top 100 Index closed up Tuesday at 1315.89,
lifted by better than expected growth at Burburry and a renewed confidence in Lululemon Athletica. Nomura has reiterated its "buy" on Burberry´s stock after the British retailer posted higher than expected growth.
Shares of Burberry in London Stock Exchange have gained more than 20 percent for the year, while Prada is down 12 percent, PPR, which owns Gucci and Yves Saint Laurent, is down one percent and LVMH Moet Hennessy Louis Vuitton remains flat for that 52-week period, recalled the CNBC.
After posting stronger quarterly results than expected, Burberry also won Nomura´s trust on Tuesday, as the Japanese broker has maintained its buy stance and 1,530p target price on luxury brand´s stocks, despite the negative market reaction on Tuesday, saying that the firm has reported a strong third quarter and brand momentum remains intact. "Burberry is well positioned to accelerate investment and space growth, while defending comp store sales through product development, flagship market investment and innovative marketing," Nomura assured in a note published on Tuesday. The broker highlighted the double-digit comparable store sales growth in Asia and Europe with the Americas up high single digits but remained confident on the potential of the brand for the rest of its financial year.
In Wall Street, Lululemon Athletica continues as the spoilt child of a good number of analysts. LULUs stock had its “hold” rating reiterated by analysts at Jefferies Group (NYSE: JEF) in a research report issued to clients and investors on Tuesday.´ Shares of Lululemon opened at 61.96 on Tuesday. Lululemon has a 52 week low of $32.78 and a 52 week of $64.49. The stock’s 50-day moving average is $49.17 and its 200-day moving average is $53.63. The company has a market cap of $8.890 billion and a P/E ratio of 54.69.