MKM Partners Reiterates Buy on lululemon athletica (LULU) Following 2Q
- Record-setting rally pushes on as S&P ends week up 3 percent
- Trump's Cohn Pick Most Bullish Sign Yet for Banks - Cowen
- Unusual 11 Mid-Day Movers: (IDXG) (INVN) (EBS) Higher; (SCON) (DTEA) (DLTH) Lower (more...)
- 21st Century Fox (FOXA) offers to acquire Sky for GBP10.75/share
- Coca Cola (KO) Announces James Quincey to Succeed Muhtar Kent as CEO; Kent to Continue as Chairman
Get access to the best calls on Wall Street with StreetInsider.com's Ratings Insider Elite. Get your Free Trial here.
MKM Partners reiterated a Buy rating and $90.00 price target on Lululemon Athletica Inc. (NASDAQ: LULU) following the company's 2Q earnings report. LULU's 5% comp included a 4% store comp and a 7% gain in DTC, below expectation's of 19%, with the differential largely due to the warehouse sale LY.
Analyst Roxanne Meyer commented, "The bears sent LULU’s stock down 8% after-hours on a lower than anticipated headline comp of 5%; we see this as an over-reaction given upside to the store comp and DTC growth that was hampered by the warehouse sale LY. In our view, LULU delivered on every metric in 2Q, even strongly surpassing our expectations as it related to the level of gross margin and inventory improvement it delivered. We look for earnings growth to roughly double in 2H from the 12% growth in 2Q given several product catalysts and initiatives as well as continued tailwinds from gross margin improvement. We believe 2Q's gross margin gain validated the opportunity for gains and sets the stage for the path to longer-term improvement. Reiterate Buy; we’d recommend investors take advantage of stock weakness today."
Shares of Lululemon Athletica Inc. closed at $76.66 yesterday.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- MKM Partners Raises Price Target on Broadcom Ltd. (AVGO) to $207 Following 4Q Beat
- Jefferies Raises Price Target on Broadcom Ltd. (AVGO) to $210 Following 4Q
- Instinet Reiterates Buy on Oracle (ORCL) Ahead of 2Q Earnings
Create E-mail Alert Related CategoriesAnalyst Comments
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!