Canaccord Genuity Sees Conservative Guide from Lululemon (LULU), But Maintains 'Buy'; PT Trimmed
Canaccord Genuity analyst Camilo Lyon trimmed his price target on Lululemon Athletica Inc. (NASDAQ: LULU) from $73 to $69 but reiterated a Buy rating ahead of Q4 results on Thursday.
Lyon said, "We are anticipating LULU to conservatively guide 2014 EPS below current Street estimates to ~$2 when it reports Q4 results on March 27. Given the confluence of macro (weather-related store closures) and company-specific issues (improving yet suboptimal product flow) that has likely impacted Q1, we are taking a more conservative view on our 2014 sales/EPS estimates."
He added, "While we believe LULU's continued investments in quality assurance teams and supply chain infrastructure should result in sequential comp improvements this year, we also believe new CEO Potdevin will take a more measured approach to 2014 guidance as he assesses the needs of the business."
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 $49.32 yesterday.
Lyon said, "We are anticipating LULU to conservatively guide 2014 EPS below current Street estimates to ~$2 when it reports Q4 results on March 27. Given the confluence of macro (weather-related store closures) and company-specific issues (improving yet suboptimal product flow) that has likely impacted Q1, we are taking a more conservative view on our 2014 sales/EPS estimates."
He added, "While we believe LULU's continued investments in quality assurance teams and supply chain infrastructure should result in sequential comp improvements this year, we also believe new CEO Potdevin will take a more measured approach to 2014 guidance as he assesses the needs of the business."
The analyst made no change to his 2013 Annual EPS estimate and lowered his 2014 Annual EPS estimate to $2.07. Mr. Lyon made no changes to his 2013 Annual Revenue estimate and lowered his 2014 Annual Revenue estimate to $1.817B.
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 $49.32 yesterday.