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Luxury fashion house Burberry (OTCPK:BURBY) (OTCPK:BBRYF) was facing some headwinds when I last covered it just over a year ago, but a fairly wide discount to my estimate of fair value
Burberry: Shares Move Closer To Fair Value Amid Lingering Headwinds
Summary
- Burberry shares have performed well since my last piece, buoyed by normalizing tourism, the easing of Chinese COVID restrictions, and currency movements.
- Currency will be a headwind to reported revenue and earnings this year, while I am also concerned by the soft numbers coming out of the Americas.
- These shares still look undervalued, but the gap to fair value has narrowed significantly since last time, while FY24 will also be a modest year in terms of growth.
I like to take a long term, buy-and-hold approach to investing, with a bias toward stocks that can sustainably post high quality earnings. Mostly found in the dividend and income section. Blog about various US/Canadian stocks at 'The Compound Investor', and predominantly UK names on 'The UK Income Investor'.
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