Sterne Agee CRT Remains Bullish on Burlington Stores (BURL) Following Yesterday's Sell-Off
Sterne Agee CRT maintains a Buy rating and $58.00 price target on Burlington Stores (NYSE: BURL) following yesterday's sell-off. Analyst Ike Boruchow believes that management articulated that the Q1 results were a result of one-time issues, and views yesterday's pullback as a compelling buying opportunity.
Boruchow commented, "Following yesterday's sell-off, we are addressing the primary investor concerns that appear to have weighed on the stock. While Q1's comp miss was clearly disappointing, we feel that management articulated that the below-plan results were more a function of one-time issues (not a change in underlying trends). Five key points to consider: 1) Easter receipt issues were isolated to Q1, 2) traffic was positive for the 3rd straight quarter, 3) spring buy miscues were a function of the prior CMO, 4) inventory remains extremely lean (down 11% psf) and 5) QTD comp trends have already rebounded. All in, we view yesterday's pullback as a compelling buying opportunity on one of the better multi-year retail stories in our space."
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Shares of Burlington Stores closed at $49.35 yesterday.