Burlington Stores price target raised on store redesign
Cowen raised its price target on Burlington Stores Inc. to $175 from $160 after analysts paid a visit to a revamped 40,000-square-foot New Jersey store that includes upgraded signage and LED lighting. “Everything about the visual presentation including the lighting, flooring, category signage, sight lines, and improved accessibility and customer navigation should lead to improved productivity vs. the existing chain as 94 stores will be in a similar new or remodeled format by year end,” Cowen wrote. The store is also designed to reorganize merchandise layout with ease and with greater efficiency for processes like inventory and checkout. Burlington Stores reported earnings that beat estimates last week, with shares up 12.7% for the past month. Cowen rates Burlington shares outperform. Off-price retailers like Burlington and T.J. Maxx parent TJX Cos. , with their “treasure hunt” shopping experience and value pricing, have seen their shares rise over the past year. SunTrust Robinson Humphrey analysts raised their price target to $164 from $159 after Burlington announced quarterly earnings. “We think a premium multiple is warranted given the momentum in the business as well as the consistency in generating upside across metrics,” the note said. SunTrust rates Burlington shares buy. Burlington stock is up 26.2% for the year so far, outpacing the SPDR S&P Retail ETF , up 8.7% for the period, and the S&P 500 index , which is up 3.5% for 2018 so far.