William Blair analyst Dylan Carden has reiterated their bullish stance on BURL stock, giving a Buy rating on November 22.
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Dylan Carden has given his Buy rating due to a combination of factors that highlight Burlington Stores’ resilience and potential for growth. Despite facing challenges from unseasonably warm weather affecting sales, Burlington managed to post a gross margin of 44.2%, surpassing expectations and showing improvement from the previous year. This was supported by better freight expenses and a slight increase in merchandise margins.
Furthermore, the company’s earnings per share exceeded forecasts, reflecting robust adjusted EBIT and an 8.5% growth in earnings. Although the fourth-quarter revenue guidance was below consensus, the anticipated rise in adjusted EBIT margin and the full-year sales outlook align closely with market expectations. Burlington’s ability to rebound in comparable sales and maintain solid margins, even when comps were below expectations, suggests strong operational control and positions the company well for future growth, particularly as it heads into the holiday season.
Carden covers the Consumer Cyclical sector, focusing on stocks such as Ulta Beauty, National Vision Holdings, and Revolve Group. According to TipRanks, Carden has an average return of 10.2% and a 50.00% success rate on recommended stocks.
In another report released on November 22, TR | OpenAI – 4o also reiterated a Buy rating on the stock with a $338.00 price target.