Burlington Stores price target lowered to $330 from $335 at TD Cowen

Published 05/09/2025, 12:06
Burlington Stores price target lowered to $330 from $335 at TD Cowen

Investing.com - TD Cowen has lowered its price target on Burlington Stores (NYSE:BURL) to $330.00 from $335.00 while maintaining a Buy rating on the stock. The stock, currently trading near its 52-week high of $309 with a market capitalization of $18.8 billion, appears overvalued according to InvestingPro analysis.

The firm noted that Burlington’s second-quarter same-store sales increased by 5%, which drove significant improvements in gross margin rate to 43.58% and resulted in adjusted earnings per share that substantially exceeded expectations. The company maintains strong revenue growth of 7.57% over the last twelve months. For deeper insights into Burlington’s financial health and growth prospects, InvestingPro offers comprehensive analysis with 13 additional key insights.

TD Cowen observed that Burlington’s selling, general, and administrative (SG&A) expenses remained relatively flat as a percentage of sales, excluding one-time items, though the analyst pointed out there were expense timing shifts from the first quarter.

The research firm indicated that Burlington’s guidance assumes much lower incremental margin in the second half compared to the first half of the year, which TD Cowen considers conservative given improved merchandising and the company’s Burlington 2.0 initiative.

TD Cowen also highlighted that with average unit retail (AUR) prices potentially rising high single digits to low double digits in retail, the off-price sector should experience strong traffic and conversion rates.

In other recent news, Burlington Stores Inc. reported impressive financial results for the second quarter of 2025. The company exceeded analyst expectations with an adjusted earnings per share (EPS) of $1.72, marking a 39% increase from the previous year, compared to the forecasted EPS of $1.29. Burlington’s revenue reached $2.71 billion, surpassing the projected $2.63 billion. These results highlight the company’s strong sales growth during this period. Additionally, analysts had anticipated lower figures, making the company’s performance noteworthy. The earnings announcement has drawn attention from investors, reflecting a positive response to the financial achievements. These developments are part of Burlington Stores’ recent performance updates.

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