Bond.az - UBS raised its price target on Burlington Stores shares to $435 from $430 while maintaining a Buy rating, the firm said Thursday.
The increase follows an 8% pullback after Q1 earnings, which UBS called a solid beat-and-raise report. The S&P 500 rose 1% over the same period.
UBS said Q1 boosted confidence in Burlington's 'Burlington 2.0' strategy and its 17% five-year EPS CAGR forecast. The quarter reinforced Burlington's structural advantages as an off-price retailer.
UBS sees the stock trading at about 26x its FY2028 EPS estimate of $16.95. The firm expects outperformance as earnings beats drive consensus upgrades.
UBS's FY2026 and FY2027 EPS estimates are 4% and 7% above consensus. Eight analysts have revised earnings upward recently.
Burlington Stores reported Q1 EPS of $2.10, beating the $1.74 consensus, and revenue of $2.85 billion versus $2.78 billion expected. Comparable sales rose 6%, above the 4.9% consensus.
