Bank of America Securities analyst Lorraine Hutchinson has maintained their bullish stance on BURL stock, giving a Buy rating on March 7.
Lorraine Hutchinson’s rating is based on Burlington Stores’ strong position for continued market share gains and its potential for sales and margin recovery. The company’s management expressed confidence in their year-to-date performance and did not see a need to adjust guidance conservatively, despite the impact of warmer weather on coat sales. Burlington has seen broad-based comparable sales growth, particularly in low-income areas, and continues to capture market share from consumers trading down.
Additionally, the potential impact of tariffs could benefit Burlington, as disruptions often favor off-price retailers. Burlington’s strategy to elevate its product assortment by focusing on better brands and visible value at all price points has shown positive results, with a 4% increase in average unit retail in the fourth quarter. The company’s investment in distribution centers and process improvements is expected to enhance efficiency and margins, supporting the Buy rating.
According to TipRanks, Hutchinson is a 4-star analyst with an average return of 5.3% and a 52.72% success rate. Hutchinson covers the Consumer Cyclical sector, focusing on stocks such as Burlington Stores, Bath & Body Works, and Nike.
In another report released on March 7, Telsey Advisory also maintained a Buy rating on the stock with a $340.00 price target.