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BRBY:LSEBurberry Group plc Analysis

Data as of 2026-03-11 - not real-time

£1,068.00

Latest Price

6/10Risk

Risk Level: Medium

Executive Summary

Burberry’s share price is trading below its 20‑day simple moving average, which itself sits under the 50‑day and 200‑day averages, signaling a bearish trend. The RSI is hovering in the mid‑30s and the MACD histogram remains negative, while volume has been rising, suggesting that downside pressure may be easing near the identified support zone.
Fundamentally, the company posted a modest revenue decline and a negative profit margin, with a debt‑to‑equity ratio well above 100%, yet it continues to generate strong operating and free cash flow. Analysts have lifted the DCF‑based fair‑value target to roughly £13.58, implying a ~27% upside from the current price, and the consensus remains a “buy” despite the recent 8% price drop and an “extreme greed” market sentiment.

Market Outlook

Short Term

< 1 year
Cautious
Model confidence: 6/10

Key Factors

  • Price is near the technical support level with bearish MACD and RSI indicating limited upside
  • Negative profit margin and high leverage increase downside risk
  • Recent sharp price drop may trigger further selling pressure

Medium Term

1–3 years
Neutral
Model confidence: 7/10

Key Factors

  • DCF valuation shows meaningful upside potential
  • Improving forward EPS and strong cash‑flow generation
  • Analyst consensus remains positive despite short‑term weakness

Long Term

> 3 years
Positive
Model confidence: 8/10

Key Factors

  • Strong brand equity and global luxury demand underpin a durable growth narrative
  • Geographic diversification reduces reliance on any single market
  • Potential to deleverage and convert cash flow into shareholder value over time

Key Metrics & Analysis

Financial Health

Revenue Growth-5.00%
Profit Margin-1.12%
P/E Ratio26.3
ROE-3.09%
ROA1.69%
Debt/Equity172.35
P/B Ratio430.1
Op. Cash Flow£539.0M
Free Cash Flow£450.9M

Technical Analysis

TrendBearish
RSI35.9
Support£1,025.50
Resistance£1,259.50
MA 20£1,147.80
MA 50£1,195.79
MA 200£1,197.11
MACDBearish
VolumeIncreasing
Fear & Greed Index78.16

Valuation

Fair Value£1,434.62
Target Price£1,358.42
Upside/Downside27.19%
GradeUndervalued
TypeBlend

Risk Assessment

Beta0.47
Volatility34.78%
Sector RiskMedium
Reg. RiskMedium
Geo RiskMedium
Currency RiskMedium
Liquidity RiskLow

This analysis may contain inaccuracies and is provided for informational and research purposes only. It is not personal investment advice, a recommendation, or an instruction to buy, sell, or hold any asset.