Burberry Share News (BRBY)

(Sharecast News) - Bernstein upped its stance on shares of luxury brand Burberry to 'market perform' from 'underperform' on Tuesday, saying it sees a more balanced risk/reward following the drop in the share price last week after its full-year results.It cited three reasons why Burberry could improve top-line growth performance in its stores going forward."a) The new Riccardo Tisci collection will come to the stores over the next few quarters; b) senior management is reporting very strong consumer traction of the new styles introduced; c) 80 stores will be in the renewed format by the end of FY20E, representing circa 50% of sales."Bernstein, which left its price target at 1,780p, said self-help stories such as Burberry continue to be exposed to a "yo-yo" risk, as they rise on investors "wanting to believe" and fall on less-than-exciting updates."Therefore we see value in being realistic, tactical, and open-minded," it said, adding that it will keep its "eyes open and ears on the ground" to confirm brand momentum down the road, and act accordingly.In its preliminary results last week, Burberry posted flat underlying profit as cost cuts offset a drop in revenue. Adjusted operating profit for the year to the end of March fell 6% to £438m but excluding currency movements profit was flat.Revenue at constant exchange rates fell 1% to £2.72bn and operating costs fell 1% to £1.42bn, while pre-tax profit rose 7% to £441m.At 1600 BST, the shares were up 0.8% at 1,816.50p.