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Why the Majority of Analysts Call Burlington Stores a ‘Buy’

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Nov. 5 2019, Updated 1:20 p.m. ET

Current ratings

As of June 19, Burlington Stores (BURL) stock was rated a “buy” by 15 out of 18 analysts (or 83%). The company has a “hold” rating from three analysts. No analysts currently have “sell” recommendations on the stock.

Several analysts have upgraded their price targets for Burlington Stores stock following the company’s strong results for the fiscal first quarter.

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Price target revisions

On June 6, Credit Suisse raised its price target for Burlington Stores stock to $165 from $146. Telsey Advisory revised its price target to $170 from the previous level of $150. Citigroup increased its price target to $147 from $135. Suntrust Robinson raised its price target to $164 from $159. Buckingham Research also increased its price target to $165 from $150. Morgan Stanley revised its price target to $150 from $145. Cowen and Company increased its price target to $160 from $151, and Deutsche Bank raised its price target to $167 from $156.

On June 8, Cowen and Company raised its price target again to $175 from $160.

As of June 19, the average 12-month price target for Burlington Stores stock was $161.93, implying an upside potential of 5.4%. As mentioned earlier in this series, Burlington Stores stock has risen 24.8% on a year-to-date basis as of June 19.

Growth prospects

Burlington Stores has been delivering strong sales growth backed by its off-price business model. The first quarter of fiscal 2018 happened to be the 21st consecutive quarter in which the company reported higher same-store sales growth. The company has also been driving its earnings growth through its productivity initiatives.

Burlington Stores expects to open 35–40 net new stores in fiscal 2018. Going forward, the company intends to open a minimum of 30 net new stores every year, with a long-term goal of touching 1,000 stores. As of May 5, the company operated 646 physical stores.

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