Oppenheimer Remains Bullish Ahead of Lululemon Athletica's (LULU) 2Q

Oppenheimer reiterated an Outperform rating and $80.00 price target on Lululemon Athletica Inc. (NASDAQ: LULU) ahead of the company's 2Q earnings report.

Analyst Anna Andreeva commented, "LULU reports 2Q16 EPS 9/1, AMC. With 2Q16 demand improved vs. 1Q16 for the industry on average (for our universe, sales accelerated by ~100 bps sequentially) and given company's recent history of top line surprises (beat sales guidance last 5 out of 6 quarters), expectations are for a top line and bottom line beat; stock has been one of best performers in discretionary (up 54% YTD, group up 10%). We think product execution keeps improving (better balance in tops across price points; last year's pant wall launch is being lapped with expanded Align fits & colors) with margin recapture accelerating (internal supply chain initiatives ahead of plan, inventories cleaned up); trading at 32x '17E EPS, valuation delta compressing vs. UA/NKE and embeds both continued top line/earnings upside."

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 $80.18 yesterday.

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