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Burlington Stores Is The Best Amazon-Proof, Off-Price Play In Retail

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Burlington Stores Is The Best Amazon-Proof, Off-Price Play In Retail

As Amazon.com, Inc. (NASDAQ: AMZN) continues its ascent in the retail space, investors are almost desperately looking for sub-sectors that remain relatively immune and can even deliver growth. And, according to Wedbush analysts Morry Brown and Taryn Kuida, off-price retailers are among the few that offer such conditions.

Bullish Thesis, Argued

On Thursday, the firm initiated coverage of one of the leaders in this sub-segment, Burlington Stores Inc (NYSE: BURL), with an Outperform rating and $107 price target, arguing that:

    1. The industry backdrop is pretty favorable, “as off-price is one of the few structural winners in retail,” given its ability to continue to attract in-store traffic and increase its market share versus digital channels. This could keep Burlington’s same store sales in the low to mid-single digits over the next few years, the experts calculated.
    2. Burlington offers “a multi-year earnings growth story that encompasses all key line items across the P&L.”
    3. The analysts see several near-term catalysts — including cold weather in December and shrink helping boost margins, and potential sales and EPS upside drivers for Q416. Thus, their EPS estimate of $1.77 stands $0.08 above the Street’s consensus.

Latest Ratings for BURL

DateFirmActionFromTo
Nov 2019Initiates Coverage OnOverweight
Nov 2019Initiates Coverage OnOutperform
Nov 2019Initiates Coverage OnBuy

View More Analyst Ratings for BURL
View the Latest Analyst Ratings

Posted-In: Analyst Color Long Ideas News Price Target Initiation Analyst Ratings Movers Tech Best of Benzinga

 

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