2023-04-04 08:03:55 ET
Loop Capital joined the bull camp on off-price retailer Burlington Stores ( NYSE: BURL ) on Tuesday.
Equity analyst Laura Champine hiked her rating on the stock from Hold to Buy and moved her price target from $220 to $225. She explained that macroeconomic softening and its impact on consumers offers a benefit to value-focused retailers like Burlington.
“BURL's value proposition for its lower-income consumers is obviously improved, and the company's new signage is calling out opening price points across categories,” she advised clients. “We think persistent inflation is tough for Burlington's customers, and the improved values and brands in stores are likely to drive market share gains for the company.”
She added that strong execution and inventory management shined through during the holiday season and appears to be continuing into 2023, per her channel checks. Champine noted that her checks indicate sales are especially strong in ladies’ apparel.
Shares of Burlington Stores ( BURL ) rose 1.8% in premarket trading after fielding the upgrade.
Read more on why Seeking Alpha contributor Heinsite Capital is also recommending the stock .
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Burlington Stores stock boosted as Loop Capital shifts to Buy