Trump announces trade deal with EU following months of negotiations
On Wednesday, RBC Capital analysts reaffirmed their Outperform rating for Burberry Group (OTC:BURBY) PLC stock, maintaining a price target of £12. The analysts highlighted Burberry (LON:BRBY)’s early-stage strategic shift, known as "Burberry Forward," which focuses on a product pivot towards outerwear.
The analysts noted the potential for increased sales volume if the pricing strategy successfully captures commercial price points and offers a broader range of options. The upcoming Autumn/Winter ’25 product lineup, set to hit stores from July to December, is expected to be a significant test of consumer response, with potential implications for the company’s third-quarter 2026 results.
RBC Capital analysts also pointed out an attractive mid-term margin opportunity, estimating a margin of 16%. However, they indicated that achieving the upper range of "high teens" margins might require more active cost reductions, especially concerning the extensive retail store network.
RBC Capital’s assessment comes amid foreign exchange-related earnings downgrades, yet the firm remains optimistic about Burberry’s strategic direction and growth potential.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.