Sterne Agee Upgrades Burlington Stores (BURL) to Buy; Strong Momentum

Sterne Agee upgraded Burlington Stores (NYSE: BURL) from Neutral to Buy with a price target of $58.00 (from $50.00), citing strong momentum and long-term drivers in place.

Analyst Ike Boruchow commented, "The BURL story continues to gain traction both in fundamental performance and investor perception. The company was a clear holiday winner (recently raised its Q4 comp and EPS outlook), while the stock appears to check all the boxes investors are focused on today (stable category, low-end exposure, no FX/international risk, momentum coming out of holiday). BURL has the highly compelling opportunity to increase sales productivity 25-50% over the next several years, while we estimate merchandise margins increase materially as per store inventories could be reduced by another 25%+ (on top of a 50% reduction the past several years). While we are late to the party here, the story is simply too compelling to turn away."

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 $48.86 yesterday.

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