Burlington Stores (BURL): Amazon Concerns Misplaced - Cowen

Cowen analyst, John Kernan, reiterated his Outperform rating on shares of Burlington Stores (NYSE: BURL) noting that investor concerns over off-price centers around

1) peak margins and productivity

2) consensus/long positioning among long only, hedge funds and sell-siders

3) co-location near malls and strip centers that will see store closures

4) AMZN and other online marketplaces gaining share from off-price retailing.

However, the analyst notes that FY20 BURL EBIT margin est. of 9.3% is still well below consensus
ests. for TJX of 11.4% and ROST of 14.3%. 30% of BURL consumers are on EBT assistance/food stamps according to the Cowen Consumer Tracker Survey while the average ticket is ~$9, and only 30% of transactions at POS are done on credit cards. Despite the concerns, the analyst views disruption from online as low.

No change to the price target of $110.00

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 $84.37 yesterday.

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