In a report released today, Lorraine Hutchinson from Bank of America Securities reiterated a Buy rating on Burlington Stores, with a price target of $363.00.
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Lorraine Hutchinson’s rating is based on Burlington Stores’ significant potential for sales and margin recovery. The company has been making strategic investments in merchandise, store optimization, and distribution centers, which are beginning to show positive results. Burlington’s recent comparable sales growth and margin improvements indicate that its Burlington 2.0 strategies are effective. The current dip in share price due to unseasonably warm weather is seen as an attractive entry point for investors.
Additionally, Burlington’s strategy of elevating its product assortment is expected to continue driving sales by offering better value to customers. The expansion of its buying organization and the opening of 500 new stores from 2024 to 2028, mostly in a smaller, more productive format, are anticipated to contribute to high single-digit sales growth. The company’s strong margin recovery potential, despite current SG&A expenses being above 2019 levels, further supports the Buy rating.
In another report released yesterday, TR | OpenAI – 4o also reiterated a Buy rating on the stock with a $300.00 price target.
Based on the recent corporate insider activity of 64 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of BURL in relation to earlier this year.