UPDATE: Bank Of America Reiterates On Burlington Stores Ahead Of 2Q Earnings Report
In a report published Tuesday, Bank of America analyst Lorraine Hutchinson reiterated a Buy rating on Burlington Stores (NYSE: BURL), and raised the price target from $38.00 to $40.00.
In the report, Bank of America noted, “Burlington will report 2Q earnings on September 9th. We expect a 2Q loss of $0.09, at the high-end of $(0.09)-$(0.12) guidance. Burlington recently implemented a reorganization of its capital structure and preannounced 2Q comp results of 3-4%, above our prior 2.5% estimate. Management is reducing interest costs by issuing $1.2bn of new lower-cost debt to redeem existing debt. We had factored a later refi at less favorable terms into our model. The implied $0.27 annual EPS benefit from this transaction is at the high end of our forecasted outcomes. We are lifting our F2014 EPS estimate by $0.16 to $1.51 and F2015 estimate by $0.19 to $1.98 to reflect the comp beat and lower interest cost.We are raising our price target to $40to reflect our higher estimates. We maintain our Buy rating as we think Burlington is poised for sales and earnings outperformance given its turnaround momentum.”
Burlington Stores closed on Friday at $35.58.
Latest Ratings for BURL
|Nov 2016||MKM Partners||Maintains||Buy|
|Sep 2016||Guggenheim||Initiates Coverage on||Neutral|
|Aug 2016||Buckingham Research||Maintains||Buy|
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