While maintaining its 'hold' recommendation on Burberry, Stifel has lowered its target price from 1,400 to 1,300 pence, in the wake of an 8% reduction in its 2024-25 EBIT forecast for the British luxury house.

"More cautious luxury consumer behavior is making Burberry's creative transition and brand elevation journey more difficult", judges the broker, who expects 2025 growth to be "skewed towards the second half".

The valuation seems undemanding, but the share is unlikely to recover until management provides the evidence of re-accelerating sales growth that investors are expecting', he adds.

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