Broker tips: Burberry, Flutter Entertainment
By Iain Gilbert
Date: Thursday 09 Oct 2025
(Sharecast News) - Deutsche Bank lifted Burberry to 'buy' from 'hold' on Thursday and hiked its price target on the stock to 1,500p from 1,200p.
It said the execution of 'Burberry Forward' remains well on track and that there were early signs of success with stronger-than-expected cFX sales growth improvement and increased management confidence.
"Investors have noticed," said DB, noting that the stock has rallied around 30% year-to-date and 90% from April lows, closely tracking FY27-FY28E consensus LFL expectations.
"Whilst the starting point is elevated we believe there is more to come," DB said. "After a brief interlude, we upgrade Burberry to buy again with a 1,500p target price. Further upside from here requires cFX growth of high single-digit to low double-digit percentage points and sustainable EBIT margin recovery.
"We feel more confident that the British luxury house is on track to reignite desire with the changes we have seen in the collections, online/ offline shopping experience and product/price realignment, combined with the strong brand heat data. In our view, this sets Burberry up to replicate the success in the heritage product to the remainder of the collection."
Analysts at Berenberg lowered their target price on bookmaker Flutter Entertainment from 24,700p to 24,200p on Thursday as they took a fresh look at the gaming sector.
Berenberg said Flutter continues to lead in the US market, pointing to its "strong progress" in iGaming, where it continues to outgrow peers, supplemented by its "market-leading sports-betting business", which continues to go from "strength to strength".
Despite this, the German bank cut its estimates due to adverse sports results, partly offset by stronger iGaming, in the US and in the ex-US business, to reflect the closure of operations in India.
"We view the sell-off in the shares (17% over the past 10 days) due to the threat of disruption from prediction markets as overdone and sit with 30% upside to our new £242 price target," said Berenberg.
The German bank, which reiterated its 'buy' rating on the stock, added that Flutter trades on a 26.1x multiple to its FY26 earnings per share estimates.
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