Breaking News: JPMorgan Raises Price Target for Burlington Stores (NYSE: BURL) to $354 Amid Strong Q2 Earnings Performance
In a recent report, JPMorgan has increased the price target for Burlington Stores to $354 from $346, maintaining an Overweight rating on the stock. This adjustment comes after Burlington's second-quarter earnings report exceeded market expectations.
The retailer reported an adjusted EPS of $1.24, surpassing the average analyst estimate of $0.96 by approximately 30%. Burlington also saw a 5% increase in same-store sales, beating both the company's forecast and consensus estimates. Gross margin expanded by 110 basis points to 42.8%, while adjusted EBIT margin expanded by 160 basis points to 4.7%.
Compared to other retailers, Burlington's positive momentum stands out with a 300 basis point sequential acceleration on a two-year stacked basis. The company has also revised its full-year 2024 adjusted EPS guidance upwards to $7.66-$7.96, anticipating further growth in same-store and total sales.
Looking ahead, Burlington expects continued outperformance and hints at potential beat and raise opportunities. Despite challenges such as increased ocean freight costs, the company remains focused on expanding within the US market and modernizing its distribution network.
InvestingPro Insights:
- Market capitalization: $16.93 billion
- P/E ratio: 44.7
- Adjusted P/E ratio (last 12 months as of Q1 2025): 40.55
- PEG ratio: 0.77
- Revenue growth: 11.74%
- Gross profit margin: 42.84%
- Total price return over the last year: 73.56%
InvestingPro Tips highlight positive analyst sentiment and the company's attractive P/E ratio relative to earnings growth. For detailed analysis and investment decisions, explore additional InvestingPro Tips on Burlington Stores.
In conclusion, Burlington Stores' strong performance, positive outlook, and potential for growth make it an intriguing investment opportunity. With a focus on expansion and operational efficiency, the company's commitment to domestic growth positions it well for the future.