Goldman Sachs has adjusted its price target for Burlington Stores (BURL, Financial), reducing it from $342 to $317 while maintaining a Buy rating on the stock. This change comes as the firm adopts a more cautious outlook for the U.S. apparel and softlines industry.
The adjustment aligns with Goldman's revised expectations for the U.S. economy, where economists have downgraded the projected GDP growth rate. The new forecast estimates a growth of just 0.5% in 2025, significantly down from the previous 2.5% projection for 2024, on a quarter-to-quarter basis.
Goldman Sachs also highlights increased uncertainties in the market. They stress that heightened market volatility, geopolitical tensions, and raised tariff rates could negatively impact earnings, although a full recessionary scenario has not been factored into their current estimates. The firm now sees a 45% chance of a U.S. recession, advising caution in the apparel sector as these risks could weigh on its performance.
