Equities

Burberry

Burberry Group is rated Long with a fair value of £12.76 and a target purchase price of £10.35 because the analysis predicts that the margin collapse from the FY25 strategic reset will be resolved by structural operating leverage and a broad-based recovery led by Greater China by FY31. The thesis rests on the view that Burberry's cost base has already been reset while its store estate remains largely intact, so incremental margin on recovering revenue is structurally higher than the market is currently pricing in.

Paolo Buquicchio

Co-Head of TMT & Financials

27 Sept 2026

With Hugo Raffard, Aryan Nejabati and Minea Mannerkivi