RBC Capital cuts Burberry price target
RBC Capital Markets cut its price target on on Friday to 1,200p from 1,300p as it reduced FY26 EBIT estimates.
The bank noted that Burberry shares have been weak, reversing all post 1H gains. This likely reflects fourth-quarter retail LFL expectations unlikely to show a sequential improvement, pushing back the potential recovery timeframe.
RBC cut its FY25 revenue estimate by 1% and its EBIT estimate to £5.2m from £5.7m. For FY26, it forecasts organic growth of 2% and £136m EBIT, which is 8% below its prior estimate.
The bank said its estimates are 3% below consensus revenue and 17% below consensus EBIT for FY26.
"Whilst Burberry is early in its turnaround, we believe it is pursuing the right strategy and Autumn/Winter '25 collection should start to address its price architecture offering some retail LFL support," RBC said.
It added that the strategy update from chief executive Joshua Schulman with FY25 results should offer "incremental insight into progress and next steps".
RBC rates the shares at 'outperform', speculative risk.
At 1050 GMT, the shares were down 1.2% at 816p.
Disclaimer & Declaration of Interest
The information, investment views and recommendations in this article are provided for general information purposes only. Nothing in this article should be construed as a solicitation to buy or sell any financial product relating to any companies under discussion or to engage in or refrain from doing so or engaging in any other transaction. Any opinions or comments are made to the best of the knowledge and belief of the writer but no responsibility is accepted for actions based on such opinions or comments. Vox Markets may receive payment from companies mentioned for enhanced profiling or publication presence. The writer may or may not hold investments in the companies under discussion.