Burberry: FTSE red lantern, Barclays downgrades to underweight

(CercleFinance.com) - On Monday, Burberry was the worst performer on the London Stock Exchange's FTSE 100 index, as Barclays lowered its recommendation on the stock to 'Underweight', with a target price cut to 540 pence.


In a sector note, the research consultancy said it was concerned about the structural weakness displayed by the British raincoat and handbag brand for some time.

Although the stock is already one of the worst performers in our coverage area, we still see downside potential due to our concerns about the group's ability to remain a high-end luxury player, given its lack of discipline in terms of pricing strategy", explain the analysts.

Barclays says it expects the British company to post losses for the first time in the first half of the 2025 financial year, knowing that a recovery in profit margins seems difficult in the short term given the current complicated environment.

At around 1:00 pm, Burberry was down by more than 6%, while the FTSE was up by 0.7% at the same time.

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