Burberry's charm offensive fails to win over RBC

What Brokers Say Retail & Consumer Written by: Ian Lyall 07:01 Tue 22 Sep 2026 --> Disclaimer No investment advice About this content Editorial Standards & Policies Share article About this content × About Ian Lyall Ian Lyall, a seasoned journalist and editor, brings over three decades of experience to his role as Managing Editor at Proactive. Overseeing Proactive's editorial and broadcast operations across six offices on three continents, Ian is responsible for quality control, editorial policy, and content production. He directs the creation of 50,000 pieces of real-time news, feature articles, and filmed interviews annually. Prior to Proactive, Ian helped lead the business output at the Daily... Read more About the publisher Proactive financial news and online broadcast teams provide fast, accessible, informative and actionable business and finance news content to a global investment audience. All our content is produced independently by our experienced and qualified teams of news journalists. Proactive news team spans the world’s key finance and investing hubs with bureaus and studios in London, New York, Toronto, Vancouver, Sydney and Perth. We are experts in medium and small-cap markets, we also keep our community up to date with blue-chip companies, commodities and broader investment stories. This is content that excites and engages motivated private investors. The team delivers news and unique insights across the market including but not confined to: biotech and pharma, mining and natural resources, battery metals, oil and gas, crypto and emerging digital and EV technologies. Use of technology Proactive has always been a forward looking and enthusiastic technology adopter. Our human content creators are equipped with many decades of valuable expertise and experience. The team also has access to and use technologies to assist and enhance workflows. Proactive will on occasion use automation and software tools, including generative AI. Nevertheless, all content published by Proactive is edited and authored by humans, in line with best practice in regard to content production and search engine optimisation. Burberry Group PLC ( LSE:BRBY ) View Price & Profile Burberry's charm offensive fails to win over RBC Published: 07:01 22 Sep 2026 EDT Burberry Group PLC (LSE:BRBY) can do many things well (including a natty line in trench coats), but persuading RBC Capital Markets to stay bullish is no longer one of them. The Canadian bank has knocked its rating down from "outperform" to "sector perform" and lopped its price target to £12 from £14. To be clear, this is not a hatchet job. Analyst Piral Dadhania is complimentary about the trench coat maker's self-help efforts, from smarter store displays to its neatly arranged scarves, T-shirts and cashmere. The Burberry Forward plan, launched in late 2024 to reignite desire for the brand, still has RBC's blessing in principle. The gripe is with the weather in the luxury market, not with Burberry's own housekeeping. RBC reckons demand for posh handbags and coats cooled over the summer and will stay subdued well into 2027. And here is Burberry's particular headache. Unlike rivals Prada and Dior, which have been busy nudging up prices, Burberry's recovery leans heavily on shifting more product. That works nicely when shoppers are in the mood, and rather less well when they are not. So RBC has pencilled in organic growth of around 3% a year to 2029, rather than the 5% it previously assumed. It has trimmed profit forecasts for the next couple of years to match. It now sits some way below the City consensus, which it politely suggests is pricing in a best-case scenario. If the mood darkens, the bank sees downside to £8; if it brightens, up to £15. The shares, at just over £10, change hands on about 22 times earnings, much like the rest of the sector. Investors will get their next read on the turnaround when half-year figures land on 12 November. For now, RBC is happy to admire Burberry's handiwork from the sidelines. Continue reading