Burlington Stores (BURL) PT Raised to $310 at Telsey

Telsey analyst Dana Telsey raised the price target on Burlington Stores (NYSE: BURL) to $310.00 (from $300.00) while maintaining a Outperform rating.

The analyst commented: "BURL continued to drive better sales and margin expansion in Q2 (driven in part by faster than expected progress in supply chain efficiency initiatives), resulting in a nice earnings beat that topped both consensus and guidance as the off price channel continues to win in the marketplace. While maintaining a cautious posture in its outlook, BURL raised its annual EPS outlook for the second time in as many quarters. While the BBBY leases bring near-term earnings pressure, we believe the company's acquisition of the desirable locations highlight the store growth opportunity relative to peers that can deliver incremental accretive topline growth over time. In addition, the five-year plan unveiled in 3Q23 shows the ability to drive topline gains through new store openings and comp growth, leading to margin expansion. Therefore, we maintain our Outperform rating. On our higher estimates, we are raising our price target to $310 from $300 previously, which assumes a multiple of 30.6x on our two-year forward EPS estimate of $10.13 and compares to the recent multiple of 31.4x and the five-year NTM average multiple of 30.1x."

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