Barclays Upgrades Burberry (BURBY) to Equal Weight, Raises PT as Brand Concerns Ease

On Tuesday, Barclays analyst Carole Madjo upgraded Burberry Group (OTC:BURBY) to Equal Weight from Underweight, and increased its price target from 720 GBp to 1,000 GBp. This shift reflects a decrease in Barclays’ concerns regarding the potential dilution of Burberry’s brand equity.

A luxury apparel store, showcasing the high-end brand offerings.

Barclays had previously downgraded Burberry due to worries about a lack of a disciplined full-price strategy, markdown initiatives, high exposure to outlets, and potential changes in management strategy. However, the firm now notes that these risks have not materialized over the past few months. Specifically, markdown activity in November 2024 did not appear to harm the brand image.

The renewed brand strategy, which focuses on offerings like outerwear and scarves, aligns more closely with Burberry’s DNA. While it’s early to determine if new products will translate into sales success when they hit stores in calendar H2, successfully navigating a markdown phase without brand damage is seen as a positive. Burberry Group (OTC:BURBY) manufactures, retails, and wholesales luxury goods under the Burberry brand.

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Disclosure: None. This article is originally published at Insider Monkey.