Sterne Agee CRT Cuts Price Target on Lululemon Athletica (LULU) Headed into 3Q
Sterne Agee CRT Buy Lululemon Athletica Inc. (NASDAQ: LULU) price target of $68.00 (from $77.00) into the company's 3Q. Results from the 3Q so far have been robust, with SSS of +11%, Which suggests that the brand is hot.
Analyst Sam Poser commented, "SSS of +11% (FX-neutral) is strong indication that the brand is hot. Results thus far in 3Q15 remain robust. However, the GM decline was above expectations due to one-time items such as the writedown of fabric and expenses related to a slowdown of the West Coast ports. The core business is strong and sell-throughs are healthy. While LULU will not see peak margin levels of 2011/2012 any time soon, annual EPS growth of HDD is not too shabby, and certainly warrants and mid-20's P/E multiple."
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Shares of Lululemon Athletica Inc. closed at $53.54 yesterday.