BBRYF - Burberry: A Hold Until The Dust Settles

• British luxury goods firm Burberry has shifted strategy in recent years in order to exercise greater control over its brand. This will benefit shareholders in the long run.
• Historical growth has been powered by Asia, specifically by Chinese consumers, which can continue after COVID.
• The pandemic has clearly had a negative impact on the firm given its reliance on physical retail and tourism.
• At 1,765 pence per share, the stock trades at around 22x pre-COVID net profit. That valuation already incorporates a return to historical growth levels.
• Question marks remain over the impact of the pandemic, specifically on travel and tourism. As such, investors need not rush to buy the stock.

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