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.
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 yearCautious
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 yearsNeutral
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 yearsPositive
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
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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.