JPMorgan dials up the conviction on Overweight-rated Burlington Stores (NYSE:BURL).
"We believe BURL offers a compelling opportunity to participate in the outperformance of the off-price channel with sales/square foot almost one-third that of peers (significant productivity opportunity) and a branded cycle still in the early innings (BURL works with 4,500+ vendors vs. TJX at 16,000)," writes analyst Matthew Boss.
"Importantly, we think 20%+ EPS growth for the next three-plus years is reasonable driven by low- to mid-single digit SSS, mid-single-digit square footage growth, 20 bps of annual margin expansion (2-3% FC hurdle), and ongoing debt deleverage," he adds.
JPMorgan's price target of $242 on Burlington is a Street high and 25X the 2021 EPS estimate. The sell-side consensus PT is $215.30.
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