© Reuters. Loop Capital sees Burlington Stores (BURL) improvements driving market share gains
By Sam Boughedda
Burlington Stores (NYSE:) was lifted to Buy from Hold, with the price target on the stock raised to $225 from $220 by Loop Capital analysts on Tuesday.
The analysts said the firm raised estimates for BURL on better-looking stores, adding that the company’s value proposition for its lower-income consumers is “obviously improved,” and the company’s new signage is “calling out opening price points across categories.”
“We think persistent inflation is tough for Burlington’s customers, and the improved values and brands in stores are likely to drive market share gains for the company,” they wrote.
They added that it is now clear that better execution over the holiday period was not a fluke, and Loop Capital sees evidence of continued better sell-through as clearance racks remain appropriately lean.
“Improvements are especially obvious to us in the most important category of ladies’ apparel. Inventory levels overall are robust, and product is appropriate for the season. We now model modest upside to consensus sales estimates. Our F2023 EPS estimate of $6.16 is ten cents above consensus,” the analysts concluded.
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