Burlington Stores Has Potential For Significant Margin Expansion - Piper Analyst Upgrades Stock
Portfolio Pulse from Nabaparna Bhattacharya
Piper Sandler analyst Edward Yruma upgraded Burlington Stores, Inc (NYSE:BURL) to Overweight from Neutral and raised the price target to $240 from $155. Yruma is confident in the company's potential for a 300+ basis points margin expansion and continued market share gains. He cites a favorable environment for off-price retailers due to conservative inventory buys by department stores. Yruma believes BURL's improved store experience and value offerings will drive market share growth, and the company's five-year guidance of 3-4% comparable store growth is achievable. After operational and cultural changes in 2022/2023, BURL is expected to refocus on long-term growth, aiming to return to 2018/2019 margin levels. FY23 revenue is projected at $9.571 billion, with FY24 revenue at $10.431 billion. BURL shares rose 1.58% to $196.42.
January 17, 2024 | 8:38 pm
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POSITIVE IMPACT
Piper Sandler upgraded Burlington Stores to Overweight from Neutral and increased the price target to $240, indicating a positive outlook on the company's margin expansion and market share growth.
The upgrade by Piper Sandler reflects a significant positive sentiment towards Burlington Stores' future performance. The raised price target suggests that the analyst sees substantial upside potential for the stock, based on the expected margin expansion and market share gains. The company's operational and cultural changes are seen as a foundation for long-term growth, which could lead to increased investor confidence and a potential rise in the stock price in the short term.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100