Fashion retailer Burlington Stores (NYSE:BURL) has been a major part of the retail landscape for a long time now. And it’s up modestly in Wednesday afternoon’s trading thanks to an analyst upgrade from Piper Sandler via analyst Edward Yruma.
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Yruma and team hiked the rating on Burlington from Neutral to Overweight and assigned a $240 price target. Yruma et al. noted that Burlington is experiencing a solid margin expansion opportunity and that the recent market share gains it’s seen likely weren’t a fluke. Rather, these gains should continue in earnest and produce further expansion. In fact, reports note, Burlington is one of just six retail operations that are seeing positive share price gains out of a possible 34.
Burlington 2.0 Taking Off?
Yruma and others like him are pointing to the recently launched Burlington 2.0 initiative to explain at least some of the recent success. Moving to an “off-price model” as well as some physical store renovations—including expansions—seems to be doing well for the clothing and home goods retailer. It’s changing its marketing efforts to focus on price, which is likely to be doing it favors, given how focused the consumer was on buy-now-pay-later (BNPL) initiatives. And it’s even been trying out some smaller stores, which also seems to be working out.
Is Burlington a Good Stock to Buy?
Turning to Wall Street, analysts have a Strong Buy consensus rating on BURL stock based on 14 Buys, two Holds, and one Sell assigned in the past three months, as indicated by the graphic below. After a 13.42% loss in its share price over the past year, the average BURL price target of $204.25 per share implies 5.32% upside potential.
