Burlington Stores: Buy Rating Affirmed Amid Growth Potential and Margin Expansion Opportunities

Analyst Alexandra Straton from Morgan Stanley maintained a Buy rating on Burlington Stores (BURL – Research Report) and decreased the price target to $267.00 from $269.00.

Alexandra Straton has given her Buy rating due to a combination of factors that highlight Burlington Stores’ potential for future growth. Despite some recent stock volatility following a cautious management tone and less impressive first-quarter performance when adjusted for one-time items, Burlington Stores managed to beat first-quarter expectations and maintain its full-year guidance. This outcome was seen as a positive result against the backdrop of fears that the company might follow its peers in withdrawing guidance.
Straton remains optimistic about Burlington Stores’ prospects due to the company’s potential for positive earnings per share revisions in the near term and its unique opportunity to recapture margins. Additionally, Burlington Stores is well-positioned compared to its peers, with a promising long-term growth and margin expansion trajectory. While the price target has been slightly reduced to $267, the overall outlook remains favorable, supporting the Buy rating.

In another report released today, TD Cowen also maintained a Buy rating on the stock with a $301.00 price target.