Analyst Updates: Burberry, Anglo and National Grid

Latest equity analyst notes on luxury retailer Burberry, mining giant Anglo American and utility company National Grid

Morningstar Equity Analysts 25 April, 2017 | 11:46AM

Burberry (BRBY)

Jelena Sokolova

Burberry's position is challenged as it is a mono-brand company with a high proportion of sales in shorter-life product categories with lower barriers to entry. As a result we have slightly downgraded our fair value estimate to £16.40 per share, and changed the stock’s economic moat rating from wide to narrow. 

While Burberry is the category leader in specific niches these areas constitute less than 50% of revenue, and their growth is limited because of exclusivity perceptions and the economic cycle. Non-outerwear apparel is a competitive and fragmented space, where the fashion cycle is faster and the product arguably matters more than the brand in purchasing decisions.

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar
Rating
Anglo American PLC1,984.40 GBX1.69
Burberry Group PLC1,488.00 GBX0.34
National Grid PLC945.00 GBX1.09

About Author

Morningstar Equity Analysts  Morningstar stock and fund analysts cover 2,000 mutual funds, 2,100 equities, and 300 exchange-traded funds.

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