Wedbush Raises Price Target on lululemon athletica (LULU) to $84
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Wedbush reiterated an Outperform rating on Lululemon Athletica Inc. (NASDAQ: LULU), and raised the price target to $84.00 (from $82.00), following the company's 2Q earnings report. Sales fell below expectations with SSS hitting +5% versus consensus of +6%. 2Q gross margin (+260 bps) came in well above consensus expectations (+130 bps).
Analyst Morry Brown commented, "Thesis unfolding as margins turn positive; SSS remain strong, slightly below ambitious market expectations. 2Q results illustrate LULU’s ability to generate strong comp sales growth despite a challenging external environment, with a +7% comp increase (ex LY’s non comparable online warehouse sale). The long promised gross margin inflection has now taken hold, with continued margin gains planned for 2H and into 2017. We reiterate LULU’s OUTPERFORM rating and position as a member of the Wedbush Best Ideas List."
Shares of Lululemon Athletica Inc. closed at $76.66 yesterday.
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Create E-mail Alert Related CategoriesAnalyst Comments, Analyst EPS Change, Analyst EPS View, Analyst PT Change
Related EntitiesEarnings, Wedbush Best Ideas List
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