Janney Defends Lululemon (LULU) Following Disappointing Guidance; Remains Attractive Long-Term
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Price: $81.05 +1.50%
Rating Summary:
12 Buy, 10 Hold, 6 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 11 | Down: 35 | New: 23
Rating Summary:
12 Buy, 10 Hold, 6 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 11 | Down: 35 | New: 23
Trade LULU Now!
Janney Montgomery Scott maintains a 'Buy' on Lululemon Athletica Inc. (NASDAQ: LULU) price target cut from $89 to $74.
Analyst, Adrienne Tennant, said, "LULU reported 1Q12 EPS beat of $0.32 versus management guidance of $0.28-$0.29 and the Street at $0.30. Stock is trading down due to lower than expected guidance and sequentially slowing comp."
"LULU remains an attractive longer term growth story, and we believe earnings growth is still above 30% annually for the next several years. However, we point out the earnings growth versus valuation disparity that has existed is likely to converge, and we expect that stock appreciation from today's corrected levels may be more measured and more in line with actual earnings growth prospects from the company. For holders, we recommend maintaining core positions in LULU."
Tennant cuts FY12 EPS estiamte from $1.60 to $1.58 (consensus is $1.63) and FY13 from $2.02 to $1.99 (consensus is $2.08)...Overall Tennant feels new investors should accumulate shares on weakness, but believes today's correction is neccessary to reset expectationsf or measured and thoughtful growth.,
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 $70.02 yesterday, with a 52 week range of $41.70-$123.84.
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Analyst, Adrienne Tennant, said, "LULU reported 1Q12 EPS beat of $0.32 versus management guidance of $0.28-$0.29 and the Street at $0.30. Stock is trading down due to lower than expected guidance and sequentially slowing comp."
"LULU remains an attractive longer term growth story, and we believe earnings growth is still above 30% annually for the next several years. However, we point out the earnings growth versus valuation disparity that has existed is likely to converge, and we expect that stock appreciation from today's corrected levels may be more measured and more in line with actual earnings growth prospects from the company. For holders, we recommend maintaining core positions in LULU."
Tennant cuts FY12 EPS estiamte from $1.60 to $1.58 (consensus is $1.63) and FY13 from $2.02 to $1.99 (consensus is $2.08)...Overall Tennant feels new investors should accumulate shares on weakness, but believes today's correction is neccessary to reset expectationsf or measured and thoughtful growth.,
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 $70.02 yesterday, with a 52 week range of $41.70-$123.84.
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