After its full-year results were announced, Stufek has raised its adjusted EBIT forecast for FY 2026 to £142m (from £92m), mainly due to additional cost-cutting measures.

The analyst is today raising its adjusted EBIT forecast for 2027 by 14% to £232m.

Stifel is consequently raising its target price to 950 pence (from 750 pence) and maintaining its 'Hold' rating on the stock.

Burberry is in the early stages of implementing a new strategy focused on British heritage and outerwear, a reasonable pricing strategy aligned with innovation centered on its flagship products, the broker says.

Stifel believes that brand awareness is improving and sales trends are set to turn positive from Q2 2026.

"In the short term, management is focused on stabilizing the business, rebuilding gross margins and generating cash flow, with a focus on cost reduction," the analyst added in conclusion.


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