Bank of America Reaffirms Buy Rating for Burlington Stores (BURL)
Burlington Stores (NASDAQ:BURL)‘s stock had its “buy” rating restated by stock analysts at Bank of America in a report issued on Tuesday. They currently have a $40.00 price target on the stock, up from their previous price target of $38.00. Bank of America’s price target would indicate a potential upside of 12.14% from the company’s current price.
The analysts wrote, “Burlington will report 2Q earnings on September 9th. We expect a 2Q loss of $0.09, at the high-end of $(0.09)-$(0.12) guidance. Burlington recently implemented a reorganization of its capital structure and preannounced 2Q comp results of 3-4%, above our prior 2.5% estimate. Management is reducing interest costs by issuing $1.2bn of new lower-cost debt to redeem existing debt. We had factored a later refi at less favorable terms into our model. The implied $0.27 annual EPS benefit from this transaction is at the high end of our forecasted outcomes. We are lifting our F2014 EPS estimate by $0.16 to $1.51 and F2015 estimate by $0.19 to $1.98 to reflect the comp beat and lower interest cost.We are raising our price target to $40to reflect our higher estimates. We maintain our Buy rating as we think Burlington is poised for sales and earnings outperformance given its turnaround momentum.”
Shares of Burlington Stores (NASDAQ:BURL) traded up 2.21% on Tuesday, hitting $36.46. The stock had a trading volume of 291,228 shares. Burlington Stores has a 1-year low of $21.54 and a 1-year high of $36.37. The stock’s 50-day moving average is $32.96 and its 200-day moving average is $29.65. The company’s market cap is $2.701 billion.
Burlington Stores (NASDAQ:BURL) last released its earnings data on Tuesday, June 10th. The company reported $0.25 EPS for the quarter, beating the Thomson Reuters 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 quarterly revenue was up 5.8% on a year-over-year basis. On average, analysts predict that Burlington Stores will post $1.52 earnings per share for the current fiscal year.
A number of other analysts have also recently weighed in on BURL. Analysts at Zacks upgraded shares of Burlington Stores from a “neutral” rating to an “outperform” rating in a research note on Wednesday, August 6th. They now have a $35.50 price target on the stock. Separately, analysts at Sterne Agee initiated coverage on shares of Burlington Stores in a research note on Tuesday, August 5th. They set a “neutral” rating and a $36.00 price target on the stock. Finally, analysts at BMO Capital Markets raised their price target on shares of Burlington Stores from $33.00 to $38.00 in a research note on Thursday, July 31st. One research analyst has rated the stock with a hold rating and nine have issued a buy rating to the company’s stock. Burlington Stores currently has an average rating of “Buy” and an average target price of $36.75.
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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