DA Davidson Maintains a 'Neutral' on Lululemon Athletica (LULU); Healthy 4Q Upside Driven by Improved Inventory, Differentiated Product

Article Stock Quotes (1) Comments (0)

DA Davidson maintains a 'Neutral' on Lululemon Athletica Inc. (NASDAQ: LULU) price target raised from $53 to $64.

DA analyst says, "Healthy inventory position fuels comp strength, but normalizing promotional cadence likely presents a gross margin headwind in 2012...We have raised our constant currency comp expectation for 2012 from 8% to 13%...Premium valuation reflects substantial growth opportunity in our view."

"Raising estimates: Our 4Q11 constant currency comps, revenue, and EPS estimates are now 24%, $363 million and $0.49, respectively. Our 2012 and 2013 revenue and EPS estimates have been raised to $1.302 billion and $1.62 and $1.583 billion and $2.00, respectively."

For an analyst ratings summary and ratings history on Lululemon Athletica Inc. click here. For more ratings news on Lululemon Athletica Inc. click here.

Shares of Lululemon Athletica Inc. closed at $53.44 yesterday, with a 52 week range of $41.70-$123.84.

---

Join StreetInsider.com FREE and get immediately alerted when news breaks on your stocks and other market items - JOIN NOW

---

*NEW - Download StreetInsider's FREE iPhone and iPad App - Click Here

---

---

You May Also Be Interested In

• UPDATE: Wedbush Downgrades XenoPort (XNPT) to Neutral
• Wells Fargo Starts Taylor Morrison Home (TMHC) at Outperform
• Best Buy (BBY) May Show Progress on Earnings Front, UBS Remains Neutral

Create E-mail Alert Related Categories

Analyst Comments

Related Entities

D.A. Davidson

Add Your Comment

Name

Subject

Body

Share on Facebook

Verification
can't see the text?
click here to refresh the image.
what's this?