Burberry Group PLC (LSE:BRBY), the British luxury fashion group, remains undervalued despite a recovery in sales and margins, UBS said as it retained its 'buy' rating on the shares. UBS cut its price target to 1,320p from 1,425p, but the new target still implies 30% upside from the 1,011p closing price on 2 October.
Burberry Group PLC (LSE:BRBY) can do many things well (including a natty line in trench coats), but persuading RBC Capital Markets to stay bullish is no longer one of them. The Canadian bank has knocked its rating down from "outperform" to "sector perform" and lopped its price target to £12 from £14.
Burberry Group PLC (LSE:BRBY) shares fell 3% to 1,052p on Wednesday after HSBC downgraded the British luxury fashion group to ‘hold' from ‘buy', taking a more cautious view of the stock. The bank's more cautious stance reflects softer momentum across the luxury sector, with the bank highlighting near-term challenges in soft luxury and muted trends that could limit investor appetite for the sector.
Burberry Group plc is executing a turnaround driven by productivity gains, brand heritage, and a reset cost base, not just luxury demand recovery. BURBY's strategy now leverages its iconic trench and British identity, introducing a good-better-best price architecture to broaden its customer funnel without diluting brand equity. Fiscal 2026 saw revenue down 2% to £2.42B, but adjusted operating profit surged to £160M and margin to 6.6%, with further cost savings and margin expansion targeted.
Burberry Group PLC (LSE:BRBY) remains one of JPMorgan's least-favoured luxury stocks despite signs that demand across the sector improved during the second quarter. Analyst Chiara Battistini retained an 'underweight' rating on the British fashion house, with the same for Gucci owner Kering SA (EPA:KER) (Kering SA (EPA:KER)) and Swiss watchmaker Swatch Group (SWX:UHR).
Burberry Group plc (BURBY) Q1 2027 Sales/Trading Call Transcript
Burberry posted flat sales growth for its first quarter, but noted that it saw growth across divisions for the first time in three years.
Burberry Group PLC (LSE:BRBY) has had its best quarter in years, and trench coats are leading the charge. The British luxury house posted first-quarter retail revenue of £455 million for the 13 weeks to 27 June, up 5% on last year, with comparable sales also climbing 5%.
Burberry Group PLC (LSE:BRBY) recent share price weakness reflects growing investor concerns that the luxury group's turnaround may struggle to deliver another round of earnings upgrades, according to UBS. Shares in the British fashion house have fallen around 19% since the start of the year, including 6% over the past month.
Shares in fashion and luxury brands were among the top risers in Europe on Wednesday after JPMorgan said booming wealth creation and tourism spending in South Korea could provide a major growth tailwind for the sector. The bank said South Korea was emerging as one of the brightest spots for luxury goods companies, helped by rising consumer confidence, surging semiconductor-linked wealth and growing tourist demand.
Burberry Group PLC (LSE:BRBY) shares offer some 30% upside according to analysts at RBC Capital Markets, as the bank stuck with a bullish stance on the British luxury brand. After full-year results from Burberry, RBC repeated an Outperform rating, a 1,400p price target, and called the brand its “preferred turnaround idea”.
Burberry scarves are having a moment. The company said this has become a pivotal area of its business.