- Burberry Group
- 27 January 2026 11:20:06
Source: Sharecast
"Following the ongoing improvements seen at the brand, we raise the name to OW as we think that Burberry is an attractive self-help play in 2026 and have fewer reasons to be cautious on the turnaround," Barclays said.
"Indeed, the brand was able to report a second consecutive quarter of positive retail comps in fiscal Q3 (despite particularly tough comps), which we view as a clear sign that the Burberry Forward strategy is working."
The bank said it sees room for further sales and earnings momentum going towards Burberry's next fiscal year. It also said recent market weakness was a good entry point.
"The more advanced stage of Burberry's turnaround plan makes it more likely to see topline and EPS upgrades in 2026 versus other players, and the share price performance is still down circa 50% versus the level of three years ago, back when the brand had revenue of £3bn (versus £2.4bn of revenue today as per our FY26 estimates).
"We view the recent pullback (shares down 8% year-to-date versus the Stoxx 600 up 3%) as an entry point allowing further upside in 2026 and note that Burberry's PE relative to the sector has come down from recent highs."
Barclays is 4% above Bloomberg consensus for FY27.
At 1120 GMT, the shares were up 0.6% at 1,181p.