Barclays is Bullish on Burberry Shares, Says Turnaround Story is Working

Burberry shares are down about 11.2% year to date and remain well below their 2023 highs of more than 2,600p, but Barclays says the luxury group’s recovery is gaining traction.

The bank upgraded Burberry to Overweight from Equal Weight on Tuesday, lifting its price target to 1,450p from 1,340p. 

Analyst Carole Madjo said in a note to clients that the company’s third-quarter update indicates that the brand’s “turnaround story is working,” adding that Barclays sees Burberry as an “attractive self-help play” for 2026 as management actions begin to filter through.

The upgrade is in contrast to JPMorgan’s note in late November, which saw the bank cut the stock to Underweight from Neutral as part of its sector outlook. 

JPMorgan raised its price target to 950p from 850p at the time but argued that while 2026 should bring stability to the luxury market, sector growth would likely remain in the low single digits.

Barclays’ call suggests a more optimistic view of Burberry’s ability to execute on its strategic reset despite a challenging backdrop for discretionary goods. 

Burberry shares have struggled in recent weeks amid weakening demand in key markets and pressure on full-price sell-through. 

LVMH’s results on Tuesday evening have further pressured the luxury sector, weighing on Burberry’s stock, which is down over 2% so far in Wednesday’s session.