KeyBanc Downgrades Lululemon Athletica Inc. (LULU) to Hold; Valuation Call & Slight Concern of U.S. Slowdown

KeyBanc downgraded Lululemon Athletica Inc. (NASDAQ: LULU) from Buy to Hold.

Analyst, Edward Yruma, said, "Since our upgrade from UNDERWEIGHT to BUY on December 2, 2011, the stock has risen 54% vs. 6% for the S&P 500 (SPX) and 14% for the S&P Retail Index (RLX), as of May 23, 2012. Our long-term, positive thesis on LULU remains unchanged. First, we believe that its brand and management remains one of the strongest in our coverage universe. Second, the Company’s multifaceted growth (men’s, international, women’s) gives it some of the best growth prospects in our coverage. We are moving to the sidelines based on its relative valuation (45.7x 2012 P/E, 5.8x EV/sales – the highest in our 30 company coverage universe) and our more cautious view on the U.S. high-end consumer."

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 $72.67 yesterday.

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