Goldman Sachs On Burlington Stores: Wait For Pullback, Recent Outperformance Leaves Limited Upside

Loading...
Loading...

Stephen Grambling of Goldman Sachs downgraded shares of Burlington Stores Inc BURL on Wednesday as recent outperformance leaves limited upside to the analyst's $46 price target.

“Burlington Stores still has a meaningful opportunity to improve sales productivity, margins and return on invested capital versus peers through improved assortments,” Grambling wrote in a note. The analyst adds that the company should benefit from falling fuel prices, however the recent outperformance in shares implies only 5 percent upside to the price target.

Grambling raised his fiscal 2014 earnings per share estimate to $1.66 from a previous $1.65 and also raised fiscal 2015 and 2016 estimates to reflect “ongoing topline momentum.” The analyst also expects the company to see EBIT margin and return on invested capital converge with peers like TJX Companies.

Bottom line, a Neutral rating reflects a limited upside in shares and the analyst is looking for a pullback to become “constructive” again.

date
ticker
name
Price Target
Upside/Downside
Recommendation
Firm
Posted In: Analyst ColorLong IdeasDowngradesAnalyst RatingsTrading IdeasBurlington StoresretailersStephen GramblinTJX Companies
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!

Loading...