Burlington Stores Inc (NYSE:BURL) tanked in early trading on Friday, even after the company reported upbeat second-quarter results.
Here are some analyst takeaways.
- Telsey Advisory Group analyst Dana Telsey maintained an Outperform rating, while raising the price target from $300 to $350.
- Goldman Sachs analyst Brooke Roach reiterated a Buy rating, while lifting the price target from $316 to $339.
Check out other analyst stock ratings.
Telsey Advisory Group: Burlington Stores reported strong quarterly results, with revenue growth and gross margin expansion coming in higher than expected, Telsey said. The company's 5% comp was "impressive," as it came on top of a 5% gain in the second quarter of 2024 and followed 0% comp in the previous quarter, she added.
Management remained cautious around performance in the back half of the year, citing uncertainties around external factors and the macro environment, the analyst stated.
"Overall, we continue to see BURL as a beneficiary in the current climate given the strength of its off-price model and ability to react to changing trends and external pressures, while continued expansion of its store fleet, along with strategic relocations, provide further growth opportunities relative to peers," she further wrote.
Goldman Sachs: Burlington Stores reported adjusted earnings of $1.59 per share, beating consensus of $1.28 per share, with comp growth of 5% coming in well above Street expectations of 1.5%, Roach said. The company raised its 2025 guidance for adjusted earnings from $8.70-$9.30 per share to $9.19-$9.59 per share, higher than consensus of $9.24 per share, she added.
"Net, the company’s guidance assumes BURL will be able to mitigate most of the incremental pressure from tariff rate changes since its prior FY25 guidance," the analyst wrote. She also expressed optimism around Burlington Stores being able to gain market share "against a dynamic operating environment."
BURL Price Action: Shares of Burlington Stores had declined by 3.04% to $286.27 at the time of publication on Friday.
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