Burlington Stores' fourth-quarter forecast 'conservative'
** Off-price retailer Burlington Stores BURL.N missed Q3 estimates on Tuesday as warmer temperatures in mid-September hurt sales in cold-weather apparel categories
** At least six brokerages cut PT; median PT of 22 analysts is $330
OPTIMISM ON COLD WEATHER, OFF-PRICE STRENGTH
** J.P. Morgan ("overweight", PT: 342) notes a favorable cold weather snap in December in addition to January to help co's Q4, backing CEO's claim that November is off to a good start
** Telsey Advisory Group("outperform", PT: $320) sees underlying trends remaining solid, and Q4 guidance as potentially conservative
** Also sees store growth opportunity relative to peers that can deliver incremental accretive topline growth over time
** TD Cowen ("buy", PT: 334) says the very strong comp trends that BURL exhibited beginning in Q3 and now Q4, irrespective of exogenous weather shocks, is supportive of the strategies in place to strengthen its off-price model
** Barclays ("overweight", PT: $317) says a further acceleration in growth hinges on execution of the off-price model more efficiently, noting an attractive environment for discount sellers
Reporting by Neil J Kanatt in Bengaluru
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