Financial Trading Blog
Stock of the day 13/04/2016 – Burberry Group PLC
Things admittedly started poorly for Burberry, touching a near 3 and a half year low of £10.49 in the first week of January. However the company’s stock price began to tick up as the month went on, namely thanks to a decent third quarter trading update. With overall sales rising by 1% to £603 million for Q3, a return to growth in China helping overcome a wince-worthy 20% fall in Hong Kong-trading (those two market making up the majority of the company’s revenue), investors were suitably impressed, enough to send the stock back above £12 as February began.
(Source: IT-Finance.com 13/04/2016)
Despite a few wobbles by the start of March Burberry had climbed all the way back to £13.50, its highest point since the previous November. The company received an even bigger boost soon after that high, talk of a takeover bid from an anonymous investor sending the stock to the £14.60s, a 5 month peak. Yet those rumours soon turned out to be false, HSBC revealing that it was multiple clients, not one big bidder, sending the stock higher, causing Burberry to plunge back below the £14 mark. That news did take the wind out of the company’s sales as March continued, though since the start of April things have picked up, Burberry sitting at a current trading price of £13.35 (IT-Finance.com, 13/04/2016).
In terms of its full year report on Thursday, the company announced in January it expects its pre-tax profit to come in at £428 million, a 6.1% decline year-on-year but arguably better than Burberry could have expected at points during the last 12 months. Perhaps more importantly investors will be looking for an update on the situation in Asia, especially the sales-haemorrhaging Hong Kong region.
Burberry Group PLC has a consensus rating of ‘Hold’ with an average target price of £14.56.
It's easy to open an account
- Fill in our simple online application form
- Fund your account
- Start trading the global markets instantly!
SEARCH FOR AN ARTICLE:
Enter a keyword and search for all relevant articlesMARKET ANALYSIS
RECENT POSTS
DISCLAIMER
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 64% of retail investors lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work and whether you can afford to take the high risk of losing your money. For professional clients, spread betting and CFD trading can also result in losses larger than your initial stake or deposit.
Spreadex Ltd is authorised and regulated by the Financial Conduct Authority, provides an execution only service and does not provide advice in any way. Nothing within this update should be deemed to constitute the provision of investment advice, recommendations, any other professional advice in any way, or a record of our trading prices. This update does not constitute or form part of an offer of, or solicitation for a transaction in any financial instrument, nor shall it or the fact of its distribution form the basis of, or be relied on in connection with, any contract therefore. Any persons placing trades based on their interpretation of the comments or information within this update does so entirely at their own risk.
No representation, warranty, or undertaking, express or limited, is given as to the accuracy or completeness of the information or opinions contained within this update by Spreadex Ltd or any of its employees and no liability is accepted by such persons for the accuracy or completeness of any such information or opinions. As such, no reliance may be placed for any purpose on the information and opinions contained within this update.
The information contained within this update is the intellectual property of Spreadex Ltd and is protected by UK and International copyright laws. All rights reserved. Users may however freely download, distribute and reproduce extracts of the contents, subject always to accrediting Spreadex Ltd as the source and providing a hyperlink to machibet77.com.
