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RBC Capital Markets has cut its target price for Burberry to 1,600p from 1,750p after lowering full-year, pre-tax profit forecasts for 2016/17 by around three per cent on the back of more conservative organic growth assumptions for Americas and Asia-Pacific. The broker said Burberry’s above sector-average exposure to the Chinese consumer was overshadowing long-term positives such as its digital leadership in the sector.
Berenberg initiated coverage of Cineworld with a “buy” and a target price of 650p as part of an in-depth report published yesterday on the European cinema industry. The broker expects Cineworld to enjoy strong earnings momentum over the mid-term as it benefits from a strong blockbuster season, structural growth in many of its newly acquired markets in eastern Europe, and further acquisition opportunities.
Peel Hunt has downgraded its recommendation for the stock to “hold” from “buy” after the rare stamps dealer issued a profits warning yesterday, blaming the slower market in Asia. The broker believes the company’s performance should improve in the second half of the year following its recent management reshuffle, a stronger auction period and lower cost base. It has cuts its target price to 150p from 330p after halving its pre-tax profit forecast for the year to £5m.