Burlington Stores (BURL) Receives a Hold from Guggenheim


Guggenheim analyst Robert Drbul maintained a Hold rating on Burlington Stores (BURL) today. The company’s shares opened today at $167.56, close to its 52-week high of $180.27.

Drbul commented:

“We continue to favor the off-price sector and believe it will continue to gain share in ’18/19, but remain NEUTRAL on BURL largely due to valuation. BURL trades at ~24x our new FY19E EPS vs. ROST/TJX (both BUY-rated) in the high-teens, while on a 2-year stack basis, all 3 reported comps in the 7-8% range in 3Q (Marmaxx comp for TJX). Total sales for 3Q increased 13.7% to $1.63bn (vs. our +12.2% estimate), including a 4.4% comp increase (above our 3.0% estimate). Growth included $128mn from new/non- comparable stores. The +4.4% ‘shifted’ comp was driven primarily by increases in traffic, units per transaction, and conversion, while AUR was down slightly; the company has reported traffic increases in 15 of the last 17 quarters. By month, sales performance was solid throughout the quarter.”

According to TipRanks.com, Drbul is a 5-star analyst with an average return of 10.5% and a 63.6% success rate. Drbul covers the Services sector, focusing on stocks such as National Vision Holdings Inc, Ascena Retail Group, and Wal-Mart Stores Inc.

The word on The Street in general, suggests a Strong Buy analyst consensus rating for Burlington Stores with a $182.27 average price target.

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The company has a one-year high of $180.27 and a one-year low of $103.98. Currently, Burlington Stores has an average volume of 1.11M.

Based on the recent corporate insider activity of 77 insiders, corporate insider sentiment is negative on the stock. Most recently, in September 2018, John Crimmins, the Executive VP of Finance of BURL sold 2,200 shares for a total of $381,810.

TipRanks has tracked 36,000 company insiders and found that a few of them are better than others when it comes to timing their transactions. See which 3 stocks are most likely to make moves following their insider activities.

Burlington Stores, Inc. is an apparel and home product retailer. Its products include ladies sportswear, menswear, coats, family footwear and youth apparel, as well as baby furniture, accessories, home decor and gifts. The company was founded in 1972 and is headquartered in Burlington, NJ.

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