UBS reiterates its sell recommendation and lowers its target price to 490 pence (from 720 pence), the day after the British luxury goods company announced a change of CEO and a profit warning. The price target highlights a potential downside of -34% for the stock.

'Burberry has just published its first-quarter sales ahead of schedule, which were due to be released on Friday this week. Q1 retail sales of £458 million were 6% below the forecast of £486 million and the UBS forecast of £489 million. The LFL was -21% (against a consensus of -16% and UBSe's forecast of -14%)' stresses the analyst firm.

'The first-quarter results include a major profit warning and the departure of the CEO. In the context of the ongoing restructuring and the absence of a clear strategy, we believe the share should be sold with a revised target of 490 pence' says UBS.

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