Gap's Buyout of Athleta Could Signal Lululemon (LULU) Is In Play

Some analysts are suggesting Gap's (NYSE: GPS) recent deal to acquire Athleta for $150 million could signal that Lululemon Athletica (Nasdaq: LULU) could also be a takeover target in the niche women's athletic apparel market.

An RBC Capital analyst said, "Investors should also ponder that LULU itself could be the retail solution for a larger player."

Other analysts worry that the Gap deal could bring increased competition for Lululemon, as Gap could bring Athleta wide exposure in the U.S. market.

Shares of Lululemon are down 3.3% this morning to $22.96. The 52-week range is $15.59-$60.70.

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