Goldman Sachs Bullish on Burlington Stores Stock Ahead of November Earnings

Burlington Stores (BURL) stock has been added to Goldman Sachs' top picks for October. The current price on the NYSE is $275.34, with a target of $382 set by Goldman. This represents a 38.7% increase from the current price.

The bank cited store growth, localization, and cost efficiencies as factors supporting further margin expansion. However, warmer weather and higher oil prices were identified as potential pressure points.

Looking at the company's Q2 revenue, Burlington reported $3 billion in sales, up 11% year-over-year but below the consensus estimate of $3.03 billion. Adjusted EPS reached $2.96 against an expected $2.19, a 35.4% beat.

The management has raised full-year adjusted EPS guidance to $11.77-$11.97 and expects fiscal 2026 sales growth of 10-11%. Comparable-store sales growth was 2%, below the 5% increase in the prior-year quarter.