Burberry shares rise as Deutsche Bank upgrades target price

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Burberry's new chief executive will unveil his strategy in November (Source: Getty)

Burberry shares were up more than two per cent in early trading this morning after Deutsche Bank raised its target price for the fashion company.

Analysts pushed the London-listed brand's target up to 1,800p from 1,775p, anticipating improved half-year results on 10 November.

Burberry shares climbed as high as 1,902p earlier, and are currently trading up 1.7 per cent at 1,878p.

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Deutsche Bank research analyst Warwick Okines said that new chief executive Marco Gobbetti was expected to push forward with a focus on driving retail sales. Deutsche expects comparable store sales growth of four per cent in the second quarter.

Analysts also pointed to the strength of the brand internationally: "Recent data from industry leader LVMH suggests continued strength of the Chinese consumer, and Burberry generates a higher proportion of its sales from this customer cluster than Louis Vuitton."

But the US business is seen as a swing-factor which could draf on profitability if not effectively repositioned.

Burberry's creative director Christopher Bailey stepped back this year after a stint combining his artistic role with being CEO.

New CEO Marco Gobbetti is expected to unveil details of his strategy for the brand next month.

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