DB upgrades LVMH and Burberry, betting on luxury recovery in 2026

Pandora A/S

09/10/2025 10:19

** Deutsche Bank Research upgrades French luxury goods conglomerate LVMH LVMH.PA and British luxury fashion house Burberry BRBY.L to "buy" from "hold", saying it is "taking the leap of faith" on a sector recovery

** "We believe investors want to participate in the sequential sales recovery driven by a Chinese recovery in 2026," DB analyst Adam Cochrane says about the sector

** The broker sees LVMH as a key beneficiary of shifting investor sentiment due forecasted improvements in EPS

** It highlights early success in Burberry's turnaround strategy and increased management confidence

** DB reiterates "buy" for Hermes HRMS.PA, Pandora PNDORA.CO and Zegna ZGN.N

** It maintains "hold" on Richemont CFR.S, Kering PRTP.PA and Moncler MONC.MI, citing a mix of valuation and margin headwinds

** It substantially raises price targets across its coverage, including a 72% hike for Kering and a 25% increase for Burberry, reflecting the more positive sector-wide outlook

(Reporting by Mateusz Rabiega)

((Mateusz.rabiega@thomsonreuters.com))