Burlington Stores: Strong Growth Potential and Strategic Positioning Justify Buy Rating

Evercore ISI analyst Michael Binetti has maintained their bullish stance on BURL stock, giving a Buy rating today.

Michael Binetti has given his Buy rating due to a combination of factors that highlight Burlington Stores’ potential for growth. Despite a slightly below market expectation for same-store sales in the first quarter, Burlington demonstrated confidence by maintaining its fiscal year 2025 guidance. This decision reflects the company’s ability to find cost savings to offset tariffs, which is seen as a positive indicator of its financial management.
Additionally, Binetti believes Burlington has a more favorable position compared to its peers due to its lower exposure to indirect imports from China, which could provide better visibility to maintain earnings per share. While there are some concerns about the consumer outlook and the need for Burlington to return to higher same-store sales growth, the company is still expected to achieve high single-digit to low double-digit revenue growth and over 20% EPS growth over the next four years. This growth potential supports the Buy rating, even as the target price-to-earnings ratio has been slightly adjusted to account for incremental risks.