Here's why Burberry shares are up this morning

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.

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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