Bank of America Securities analyst Lorraine Hutchinson has reiterated their bullish stance on BURL stock, giving a Buy rating today.
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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.