Sterne Agee CRT Remains Bullish on Burlington Stores (BURL) Following Yesterday's Sell-Off

Sterne Agee CRT maintains a Buy rating and $58.00 price target on Burlington Stores (NYSE: BURL) following yesterday's sell-off. Analyst Ike Boruchow believes that management articulated that the Q1 results were a result of one-time issues, and views yesterday's pullback as a compelling buying opportunity.

Boruchow commented, "Following yesterday's sell-off, we are addressing the primary investor concerns that appear to have weighed on the stock. While Q1's comp miss was clearly disappointing, we feel that management articulated that the below-plan results were more a function of one-time issues (not a change in underlying trends). Five key points to consider: 1) Easter receipt issues were isolated to Q1, 2) traffic was positive for the 3rd straight quarter, 3) spring buy miscues were a function of the prior CMO, 4) inventory remains extremely lean (down 11% psf) and 5) QTD comp trends have already rebounded. All in, we view yesterday's pullback as a compelling buying opportunity on one of the better multi-year retail stories in our space."

For an analyst ratings summary and ratings history on Burlington Stores click here. For more ratings news on Burlington Stores click here.

Shares of Burlington Stores closed at $49.35 yesterday.

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