UBS raises Burlington Stores stock price target to $430 on strong growth outlook

Published 29/08/2025, 14:50
UBS raises Burlington Stores stock price target to $430 on strong growth outlook

Investing.com - UBS raised its price target on Burlington Stores (NYSE:BURL) to $430.00 from $390.00 on Friday, while maintaining a Buy rating on the stock. The retailer, currently valued at $18.2 billion, trades at a P/E ratio of 36x and has delivered a strong 18.4% return over the past six months.

The investment firm sees 45% upside potential for the off-price retailer, citing Burlington’s ability to offer better value to consumers compared to competitors, which likely leads to market share gains against struggling retail channels such as department stores. According to InvestingPro analysis, the company has demonstrated solid revenue growth of 7.6% over the last twelve months, though technical indicators suggest the stock may be approaching overbought territory.

UBS projects a robust five-year earnings per share compound annual growth rate of approximately 19% from fiscal year 2024 through fiscal year 2029, and believes the stock should trade at roughly 30 times its fiscal year 2027 EPS estimate of $14.30.

The firm expects Burlington to outperform over the near term as earnings beats drive upward revisions to consensus EPS estimates and continue to improve market sentiment toward the stock.

UBS noted that Burlington’s second-quarter earnings report increased its conviction in this outlook, prompting the 10% increase in its price target to $430.00.

In other recent news, Burlington Stores has reported impressive second-quarter results for 2025, with earnings per share (EPS) of $1.59, surpassing the forecasted $1.29 by over 23%. The company’s revenue also exceeded expectations, reaching 2.71 billion USD compared to the anticipated 2.63 billion USD. These strong financial results are attributed to Burlington’s strategic Burlington 2.0 initiatives, which have driven 5% comparable sales growth and a 10% increase in revenue. Jefferies responded to this performance by raising Burlington’s price target from $300 to $350, maintaining a Buy rating on the stock. Meanwhile, William Blair reiterated an Outperform rating, highlighting potential business momentum and a favorable inventory environment. The firm also noted that Burlington’s shares trade at nearly 28 times its 2026 adjusted EPS estimate, indicating investor confidence in the company’s growth prospects. These developments reflect a positive outlook for Burlington Stores among analysts and investors alike.

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