Gold bars to be exempt from tariffs, White House clarifies
Investing.com - UBS has reiterated its Buy rating and $390.00 price target on Burlington Stores (NYSE:BURL), citing the retailer’s strong value proposition and potential for market share gains. According to InvestingPro data, the stock currently trades at a PEG ratio of 0.8, suggesting attractive valuation relative to its growth prospects, though the current share price indicates slight overvaluation based on Fair Value models.
The investment firm expects Burlington to capture business from struggling department stores and believes the company’s Burlington 2.0 strategy is effectively driving earnings growth that may exceed market expectations. The company has demonstrated solid performance with 8.34% revenue growth and maintains a strong Piotroski score of 7, according to InvestingPro data, which offers additional insights through its comprehensive Pro Research Report.
UBS projects an 18% five-year earnings per share compound annual growth rate from fiscal year 2024 through fiscal year 2029, suggesting potential 72% upside to its price target.
The firm’s fiscal year 2025 earnings per share estimate stands 11% above consensus, indicating UBS anticipates stronger performance than the broader market expects.
While UBS acknowledges tariffs represent a downside risk, it expects Burlington to outperform as earnings beats drive upward revisions to consensus estimates and shift market sentiment from bearish to bullish.
In other recent news, Burlington Stores has reported a 6% year-over-year sales growth for the first quarter, with a gross margin improvement to 43.8%, up 30 basis points from the previous year. The company’s adjusted earnings per share (EPS) for the quarter reached $1.67, surpassing both TD Cowen’s estimate of $1.53 and the consensus of $1.43. UBS analysts have maintained a Buy rating on Burlington Stores, with a price target of $390, citing the company’s strategic initiatives and potential market advantages. Meanwhile, TD Cowen adjusted its price target to $301 but retained a Buy rating, expressing optimism for the second half of the year despite macroeconomic concerns.
BMO Capital Markets reiterated an Outperform rating with a $277 target, noting Burlington’s ability to exceed profit expectations despite lower sales forecasts for the second quarter. Bernstein analysts cut their price target to $365 while maintaining an Outperform rating, acknowledging Burlington’s potential for long-term earnings growth despite short-term demand pressures. Burlington’s management has maintained its full-year guidance, with a cautious outlook reflecting the current economic environment. The company’s strategic focus on inventory management and tariff impacts continues to be a point of interest for analysts and investors alike.
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