Burlington Stores shares up 4.6% after Goldman Sachs upgrade
Burlington Stores Inc. was up 4.6% in Thursday trading after the company's shares were upgraded to buy from neutral at Goldman Sachs. Analysts believe the off-price retailer will report earnings that meet or beat consensus through fiscal 2017. The bank raised its price target to $59 from $56. "We expect the beat-and-raise story to resume as Burlington returns to fundamental outperformance with normalizing weather," analysts wrote in a Thursday note. They believe the company will improve sales and margins with better merchandise, inventory management and smaller stores. Goldman Sachs raised its earnings per share estimates for fiscal 2015, 2016 and 2017 to $2.31, $2.80 and $3.24 respectively from $2.30, $2.75 and $3.15. Burlington shares are up 8% over the past three months. The S&P is down 7% for the same period.
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