Burlington Stores Upgraded by Morgan Stanley to “Buy” (BURL)
Burlington Stores (NASDAQ:BURL) was upgraded by investment analysts at Morgan Stanley to a “buy” rating in a note issued to investors on Friday. The firm currently has a $38.00 price target on the stock, up from their previous price target of $34.00. Morgan Stanley’s price target would indicate a potential upside of 22.54% from the stock’s previous close.
The analysts wrote, “We see a high likelihood that Burlington will take advantage of lower available interest rates and reorganize its capital structure by early F2015. We estimate that a recapitalization could provide meaningful earnings upside. The company’s $1.34bn of long-term debt currently has an annual cost of about 6.5%, and based on our calculations, each point of interest rate reduction from a recap adds $0.10 to annual EPS. We are updating our model to reflect a balance sheet recapitalization occurring in early 1Q15. “We assume the cost of long-term debt improves by 100bp and adds $0.10 to our F2015 EPS estimate; we are now at $1.79. Our interest expense assumption could prove to be conservative, and we see room for additional upside potential. We are raising our Price Objective by $4 to $38 to reflect our higher estimates.”
Shares of Burlington Stores (NASDAQ:BURL) traded up 0.52% on Friday, hitting $31.17. The stock had a trading volume of 97,802 shares. Burlington Stores has a 52-week low of $21.54 and a 52-week high of $33.12. The stock has a 50-day moving average of $29.38 and a 200-day moving average of $28.33. The company’s market cap is $2.309 billion.
Burlington Stores (NASDAQ:BURL) last posted its quarterly earnings results on Tuesday, June 10th. The company reported $0.25 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.22 by $0.03. The company had revenue of $1.13 billion for the quarter, compared to the consensus estimate of $1.13 billion. The company’s revenue for the quarter was up 5.8% on a year-over-year basis. On average, analysts predict that Burlington Stores will post $1.38 earnings per share for the current fiscal year.
Separately, analysts at Goldman Sachs upgraded shares of Burlington Stores from a “neutral” rating to a “buy” rating in a research note on Monday. They now have a $37.00 price target on the stock, up previously from $33.00. One investment analyst has rated the stock with a hold rating and eight have issued a buy rating to the company’s stock. The company currently has a consensus rating of “Buy” and an average price target of $32.93.
In other Burlington Stores news, VP John Crimmins unloaded 4,114 shares of the company’s stock in a transaction that occurred on Tuesday, June 17th. The shares were sold at an average price of $31.02, for a total transaction of $127,616.28. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link.
Burlington Stores, Inc is a national off-price retailer of branded apparel, operating 503 stores, inclusive of an Internet store, in 44 states and Puerto Rico.
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