Bullish indicating open at $55-$60, IPO prices at $37
Investing.com - TD Cowen raised its price target on Burlington Stores (NYSE:BURL) to $335.00 from $301.00 while maintaining a Buy rating. The stock, currently trading with a P/E ratio of 32.6, shows strong market presence with a market capitalization of $16.9 billion. According to InvestingPro analysis, the stock appears slightly overvalued at current levels.
The firm cited Burlington’s multi-year supply chain transformation as a key driver for the upgraded outlook. TD Cowen noted that traffic improved following a moderation in June as the back-to-school shopping season began. The company has maintained solid revenue growth of 8.3% over the last twelve months, demonstrating operational effectiveness.
TD Cowen expressed conviction in Burlington’s supply chain-driven transformation, supporting a multi-year bull case of $16 in earnings per share by fiscal year 2028, representing an 18% five-year compound annual growth rate and a path to over $1 billion in free cash flow.
The firm views Burlington’s second-quarter guidance as "fairly conservative" with implied second-half guidance also appearing conservative, though it acknowledged potential tariff impact in the second half as a risk point.
TD Cowen highlighted Burlington’s recent infrastructure investments, including the purchase of a 2 million square foot distribution center in Ellabell, Georgia, nearly twice the size of the company’s average distribution center, and the acquisition of its Riverside, California distribution center, described as the company’s most automated facility. With a beta of 1.69, the stock shows higher volatility than the market. For deeper insights into Burlington’s financial health and growth potential, check out the comprehensive Pro Research Report available on InvestingPro, which includes 8 additional key insights about the company’s performance.
In other recent news, Burlington Stores has been the focus of several analyst reports highlighting the company’s financial performance and strategic initiatives. UBS has maintained its Buy rating and reiterated a price target of $390 for Burlington, citing the retailer’s effective "Burlington 2.0" strategy and potential for market share gains. The firm expects Burlington to benefit from its strategic initiatives, particularly in capturing business from struggling department stores. Meanwhile, TD Cowen adjusted its price target for Burlington to $301, maintaining a Buy rating, after reviewing the company’s second-quarter performance and noting macroeconomic challenges. Burlington’s second-quarter comparable store sales showed a modest increase of 1%, although concerns about consumer spending were noted.
Additionally, BMO Capital Markets reiterated its Outperform rating with a $277 price target, acknowledging Burlington’s strong first-quarter results driven by gross margin improvements. Despite slightly lower-than-expected second-quarter revenue and earnings forecasts, Burlington has sustained its full-year guidance. UBS also highlighted Burlington’s consistent adjusted earnings per share (EPS) guidance for fiscal year 2025, with the potential for upward revisions based on recent performance. Analysts have noted the company’s ability to exceed earnings expectations, with a 24-cent EPS beat in the first quarter and surpassing the upper end of its initial adjusted FY24 EPS outlook.
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