Bank of America Securities analyst Lorraine Hutchinson has reiterated their bullish stance on BURL stock, giving a Buy rating today.
Lorraine Hutchinson’s rating is based on Burlington Stores’ potential for significant sales and margin recovery, as evidenced by their strong fourth-quarter earnings that exceeded expectations. The company is projected to achieve a 7% sales growth in fiscal year 2025, driven by comparable sales and an increase in store square footage. Hutchinson has increased the EPS estimate for fiscal year 2025 by 3% due to a solid fourth-quarter performance, despite challenges in the first quarter and delayed store openings.
Additionally, Burlington’s management is optimistic about the performance of new stores, with plans to open 100 net new stores annually in fiscal years 2025 and 2026. The company is capitalizing on favorable lease opportunities from distressed retailers, enhancing their store network. Burlington is also benefiting from a consumer trend of trading down, with strong performance in lower-income areas and an increase in average unit retail. This strategic positioning and ability to adapt to market trends support Hutchinson’s Buy rating.
In another report released today, Barclays also maintained a Buy rating on the stock with a $329.00 price target.