Burberry Group AI Price Prediction

The negative EPS and very high negative P/E ratio indicate that Burberry is currently loss-making, with the market still assigning a relatively rich valuation to those losses. This combination typically reflects weak near-term profitability and elevated execution risk. Without clear evidence of an imminent earnings recovery, the financial profile skews negative for the stock in the short to medium term.

• Negative EPS of -0.07 confirms the company is currently unprofitable, undermining near‑term equity value support from earnings.
• A P/E ratio of -158.79 implies the market is paying a high multiple despite losses, leaving the stock vulnerable if a turnaround in profitability is slower than expected.
• Loss‑making status in a discretionary, cyclical luxury segment raises sensitivity to macro slowdowns and consumer demand shifts, increasing downside risk if revenue growth does not re‑accelerate.

The stock is down 17% over the last month and trades below its 200‑day moving average, signaling a clear downtrend. An RSI of 21.90 indicates the shares are deeply oversold, which can support short‑term bounces but typically reflects strong selling pressure and negative sentiment. Overall, the technical setup is weak, with any potential rebound likely to face resistance near the 200‑day moving average.

• Current price of $1.1K is below the 200‑day moving average of $1.2K, a classic sign of a prevailing bearish trend and longer‑term technical weakness.
• A 17% decline in the last month indicates accelerated downside momentum, often associated with deteriorating fundamentals or outlook.
• RSI at 21.90 is in oversold territory (<30), suggesting the stock may be due for a short‑term technical relief rally but within a broader negative trend.

Burberry’s current loss‑making status, rich negative valuation multiple, and clear technical downtrend combine to create a bearish overall setup for the stock. While alternative data show a strong, stable brand footprint and some hiring momentum, they do not yet point to a decisive improvement in demand or earnings. Until profitability visibly recovers or technicals stabilize above key levels, the risk‑reward profile appears skewed to the downside.

• Negative earnings, a stretched negative P/E, and a sharp recent price drop below the 200‑day moving average support a bearish stance despite potential for short‑term oversold bounces.
• Alternative data indicate a solid but largely static brand and digital presence, which is not sufficient on its own to offset current financial and technical headwinds.