Shares in Burberry Group (BRBY.L) shed 4 percent, the top blue-chip loser in the UK, as Nomura says the firm's shares look fully-valued, ahead of the luxury goods company's second-half update due on April 20.
"While we remain optimistic that significant growth and margin potential remains in coming years, we believe this is largely reflected in the current valuation," says the broker in a note.
It says Burberry trades on 20.2 times 2010 price earnings, in line with the luxury sector average, and a 30 percent premium against the five-year historical company average.
Nomura estimates fourth-quarter sales of 310 million pounds, a slowdown compared to the third-quarter. It maintains its "neutral" rating on the stock.
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