Citi Reiterates Buy Rating on Lululemon Athletica Inc. (LULU)

Citi analyst Paul Lejuez reiterated a Buy rating and $520.00 price target on Lululemon Athletica Inc. (NASDAQ: LULU).

The analyst commented, "We anticipate a 4Q EPS beat (3/21 AMC) at $5.05 vs cons $5.00 based on stronger GM (driven by better freight flow-through). While LULU has demonstrated impressive growth in F23 against difficult multi-year comparisons, we anticipate the US business will slow in F24 to MSD-HSD, which will be a point of focus on the call. Despite an anticipated slowing in the US, we expect mgmt to guide F24 in-line with their long-term algo for mid-teens topline growth and modest EBIT margin expansion, implying F24 guidance of $14.20-14.35 (cons $14.29) with growth more weighted to int’l markets, particularly China. With industry datapoints suggesting a weaker start to 1Q, we see mgmt guiding 1Q below cons. We acknowledge this is a tough setup, making us more cautious into 4Q EPS. However, given the strength of the brand and momentum in int’l markets, we still like the longer-term risk/reward."

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 $465.55 yesterday.

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