Sterne Agee CRT Cuts Price Target Following Burlington Stores (BURL) Q1 Results

Sterne Agee CRT maintains a Buy rating on Burlington Stores (NYSE: BURL), and cut the price target to $58.00 (from $63.00), following Q1 results. BURL reported EPS of $0.41 (slightly above guidance of $0.36 to $0.40). comps missed plan at +0.8% vs. guidance for +2-3%. Q2 EPS was guided to $0.10 to $0.13. FY guidance maintained

Analyst Ike Boruchow commented, "BURL missed top-line expectations for Q1 due to a combination of self-inflicted wounds (poor Easter execution) and timing-related issues (tax refunds). On the bright side, GMs came in well above expectations (significantly reduced markdown activity), inventory remains tightly managed (down 11% psf) and comps have re-accelerated QTD. Last, the company addressed 2 of the big overhangs heading into the print, announcing a new CMO (with strong off-price experience) and an EPS-neutral wage hike (efficiencies offset incremental payroll). While this has now turned into a "show me" story given the Q1 miss, with their 20% EPS growth profile intact, we still view the risk/reward profile as favorable and would be buyers on today's weakness."

For an analyst ratings summary and ratings history on Burlington Stores click here. For more ratings news on Burlington Stores click here.

Shares of Burlington Stores closed at $53.89 yesterday.

You May Also Be Interested In

• Citi Upgrades United Microelectronics Corp (2303:TT) (UMC) to Buy 'with limited downside'
• Goldman Sachs Upgrades Bank Central Asia Tbk (BBCA:IJ) (PBCRY) to Buy
• Summit Insights Downgrades Silicon Labs (SLAB) to Hold, 'expect its stock to be an inline performer'