UPDATE: Morgan Stanley Reiterates on Burlington Stores Following Impressive 4Q Comp

In a report published Friday, Morgan Stanley analyst Kimberly C. Greenberger reiterated an Overweight rating on Burlington Stores (NYSE: BURL), and raised the price target from $29.00 to $32.00.

In the report, Morgan Stanley noted, “Burlington is a combined turnaround and debt paydown story. Its transformation is still in the middle innings, but has already shown strong results. We think BURL can grow EPS 18% annually for the next three years. Its ongoing transformation should help it sustain solid top-line momentum while expanding margins and paying down debt. We rate BURL Overweight as current valuation looks attractive. We are positive on Burlington's fundamental story, and risk-reward is favorably skewed at today's stock price.

"The stock is a way to gain exposure to the secular off-price retail growth thesis for those looking for a bigger bull case and willing to tolerate more risk relative to TJX and ROST.”

Burlington Stores closed on Thursday at $29.99.