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

January 10, 2012 2:04 PM EST Send to a Friend
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Price: $40.85 --0%

Rating Summary:
    13 Buy, 20 Hold, 6 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 9 | Down: 20 | New: 18
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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.


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