Broker tips: Burberry, Invinity Energy Systems

(Sharecast News) - Analysts at Berenberg initiated coverage on luxury fashion house Burberry with a 'hold' rating and a 1,080p target price on Tuesday, as it noted the group was "not fully waterproof". Berenberg noted that Burberry was "undergoing a strategic reset" to restore brand coherence, rebuild margins and re-establish growth. While it said early actions had addressed product and distribution mis-steps, the focus now shifts to execution.

The German bank highlighted that Burberry's luxury apparel market share has declined to 1.7%, even though the group had "returned to modest growth" in the second half of 2025, while peers such as Moncler and Prada have gained ground.

"While engagement is improving in China, with the brand re-entering the COMPASS index's top 10, Western markets remain weak and the Americas have not delivered the consistent growth achieved by peers. Distinguishing structural brand improvement from cyclical recovery will require multiple quarters, leaving execution risk skewed to the downside," said Berenberg.

The German bank, which values Burberry using a blended discounted cashflow and enterprise value-to-sales multiple, said the stock trades below its ten-year average of 2.3x, which it views as appropriate given execution risk and macro uncertainty.

"On a forward P/E basis, Burberry trades at a notable premium to the sector, 29.7x FY27E P/E versus 23.4x for the luxury average," added Berenberg. "With recovery expectations already reflected, scope for a further re-rating appears limited."

Canaccord Genuity lowered its target price on battery manufacturer Invinity Energy Systems from 40p to 33p on Tuesdsay after the AIM-listed firm issued revised guidance for its 2026-28 commercial pipeline and project grant income.

Canaccord Genuity said Invinity had moved its numbers "materially to the right" after four months of slow order flow, plus one customer facing implementation challenges on existing projects.

The Canadian bank noted that Invinity's cost reduction program "continues at pace", ahead of management expectations, and said it understands that the company now expects to be able to profitably deliver large-scale Endurium flow batteries at roughly $250 per kilowatt hour from 2028, a "dramatic reduction" and at a "highly cost-competitive" price when compared to lithium-ion.

"We are revising forecasts accordingly and presenting 2028 forecasts for the first time; this is the first year UK LODES work is expected to land; a project update from DESNEZ is expected within the next six weeks. Cash flow, whilst still negative, looks likely to allow cash to remain positive through this year and most likely through 2027E," said Canaccord, which has a 'buy' rating on the stock.

"2025 results continue to be expected before the end of June. We are revising our target to 33p (was 40p) given the lower near-term earnings."