Burlington Stores stock price target maintained at $390 by UBS

Investing.com - UBS maintained its Buy rating and $390.00 price target on Burlington Stores (NYSE:BURL) ahead of the retailer’s second-quarter earnings report, due in 3 days. The stock, currently trading at $279.14 with a market cap of $17.37 billion, has shown strong momentum with an 19% return over the past six months.

UBS analyst Jay Sole indicated that industry checks suggest Burlington had a strong second quarter. The firm forecasts an 18-cent earnings per share beat versus consensus estimates, primarily driven by stronger revenue growth. InvestingPro data shows the company maintaining healthy revenue growth of 8.3%, with 10+ additional exclusive insights available to subscribers.

UBS expects Burlington to raise its full-year earnings per share guidance by approximately the amount of the anticipated second-quarter beat. The firm noted that investor conversations suggest the market holds a similar view of Burlington’s prospects.

The options market is pricing in a potential share price movement of plus or minus 8.1% following the earnings announcement, compared to the historical average move of 7.2% for Burlington earnings reports.

UBS anticipates less volatility than the 8.1% swing currently priced into options, suggesting the firm sees a balanced upside/downside scenario over the earnings event.

In other recent news, Burlington Stores has made several strategic moves and received notable attention from analysts. The company announced that Michael Skirvin will join its Board of Directors and Audit Committee, bringing over 30 years of experience in the off-price retail sector. In terms of financial outlook, TD Cowen raised its price target for Burlington Stores to $335, citing improvements in their supply chain and increased traffic during the back-to-school season. UBS also reiterated its Buy rating with a $390 price target, highlighting Burlington’s strong value proposition and potential to gain market share from struggling department stores.

Additionally, UBS analysts expressed confidence in Burlington’s "Burlington 2.0" strategy, which they believe will continue to provide significant margin benefits. In contrast, TD Cowen had previously adjusted its price target to $301, maintaining a Buy rating despite acknowledging macroeconomic challenges and consumer spending concerns that could impact future performance. These recent developments reflect a dynamic period for Burlington Stores as it navigates both internal strategic initiatives and external market conditions.

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