Bank of America Securities analyst Lorraine Hutchinson has reiterated their bullish stance on BURL stock, giving a Buy rating today.
Claim 70% Off TipRanks This Holiday Season
- Unlock hedge fund-level data and powerful investing tools for smarter, sharper decisions
- Stay ahead of the market with the latest news and analysis and maximize your portfolio's potential
Lorraine Hutchinson’s rating is based on Burlington Stores’ potential for margin expansion, which is expected to more than compensate for the weaker third-quarter sales performance. The company has shown promising margin flowthrough and quarter-to-date sales acceleration, reinforcing confidence in its growth strategy through 2026. As a result, Hutchinson has increased the earnings per share estimates for fiscal years 2025 and 2026, reflecting the company’s ability to surpass third-quarter expectations and improve fourth-quarter margins.
Furthermore, Burlington Stores has taken strategic actions to protect its margins from tariff impacts by reducing inventory and focusing on cost-saving measures. The company is also expected to implement more aggressive pricing strategies in fiscal year 2026, similar to its peers, which could further enhance margins. Additionally, efficiencies from a new distribution center are anticipated to contribute to operating margin expansion, supporting the company’s long-term financial goals. These factors collectively justify the Buy rating and the price objective of $363.
In another report released today, Barclays also maintained a Buy rating on the stock with a $331.00 price target.