Wells Fargo analyst Ike Boruchow has maintained their bullish stance on BURL stock, giving a Buy rating on February 7.
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Ike Boruchow’s rating is based on a combination of factors that highlight both challenges and opportunities for Burlington Stores. Despite a challenging setup for the fourth quarter, compounded by street models misrepresenting revenue expectations and high EPS forecasts for 2025, Boruchow remains optimistic about the current risk/reward scenario. The market seems to have overlooked the impact of the ’13 vs. 13 week’ detail in Burlington’s revenue guidance, which suggests that reported figures might not meet street expectations, though this is not deemed a fundamental issue.
Additionally, while the street’s projections for 2025 appear overly optimistic, Boruchow’s model anticipates more realistic revenue growth and margin improvements, aligning closer with management’s expectations. The slowdown in trends following a successful holiday season and macroeconomic concerns regarding customer demographics also pose challenges. However, with the stock trading closer to the bear case and the current levels largely pricing in these considerations, Boruchow sees an opportunity to leverage the pullback and add to Burlington Stores as a top pick for 2025.