British fashion retailer Burberry (BURBY) stock is falling today on news that its potential acquisition by Moncler (MONRF) is not happening. Shares had previously risen on speculation that the Italian outerwear company might be considering a takeover. However, Reuters reports that Moncler has confirmed it has no plans to pursue a Burberry acquisition. This news has sent both stocks down today as negative market momentum pushes down many high-end fashion companies.
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What’s Happening with Burberry Stock Today?
Since news of Moncler’s plans broke today, Burberry stock has been trending downward. As of this writing, it is down 4% for the day, though its trajectory suggests it could continue declining. Trading has been fairly volatile over the past week. Indeed, shares are currently down 4% for the past five days.
Granted, Burberry hasn’t seen a positive growth catalyst in months, so there’s been very little to boost shares. Being acquired by an industry leading company like Moncler could have helped it save some face with investors after an extremely difficult year, during which shares have declined by almost 50%. Now that the acquisition is not happening, there is no turnaround in sight.
Moncler, by contrast, is down less than 2% for the year. It recently reported strong revenue growth for the past three quarters despite challenging market conditions for wholesale retailers. While most of the luxury fashion sector is down today on negative market momentum, Moncler is in a better position than Burberry to bounce back in 2025.
Analysts Are Fairly Bullish on Moncler Stock
Only one analyst follows Burberry stock. But Wall Street remains fairly bullish on Moncler. Analysts have a Moderate Buy consensus rating on MONRF stock based on five Buys and 10 Holds assigned in the past three months, as indicated by the graphic below. In addition, the average MONRF stock price target of $61.69 per share still implies 13% upside potential.
