Jefferies Raises Price Target on Lululemon Athletica Inc. (LULU), 2011 As a Whole Will Be Strong
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Price: $119.55 -0.01%
Rating Summary:
13 Buy, 34 Hold, 4 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 5 | Down: 4 | New: 6
Rating Summary:
13 Buy, 34 Hold, 4 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 5 | Down: 4 | New: 6
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Jefferies is reiterating their Hold rating on shares of Lululemon Athletica Inc. (NASDAQ: LULU) but is raising their price target to $75 from $71.
With the company already pre-announcing their 4Q results with with an EPS of $0.64 when the firm and street was anticipating $0.57 and $0.56, the company's guidance was released at $0.55-$0.57. Just over $0.04 of the upside was driven by a lower than expected tax rate of 36% instead of 40%. The company experienced SSS of growth of 28%.
The company release their 1Q11 guidance with an EPS range of $0.36-$0.38 and a 2011 EPS range of $1.90-$2.00. The streets estimates were $0.37 and $1.86. Jefferies is raising their FY11 EPS estimate to $2.10 from $1.86 and is introducing their FY12 at $2.71.
The firm reports that the underlying demand for the brand is accelerating at a faster pace than the company first expected. have. "However, we believe the inventory issue limits the degree of upside surprise to 1Q11 and possibly 2Q11, and earnings will not be as large as investors have grown accustomed to over the past seven quarters. Today's 4% correction creates a potentially attractive pull back, but we recommend waiting until at least June given the overhang on the stock."
For more ratings news on Lululemon Athletica Inc. click here and for the rating history of Lululemon Athletica Inc. click here.
Shares of Lululemon Athletica Inc. closed at $76.37 yesterday.
With the company already pre-announcing their 4Q results with with an EPS of $0.64 when the firm and street was anticipating $0.57 and $0.56, the company's guidance was released at $0.55-$0.57. Just over $0.04 of the upside was driven by a lower than expected tax rate of 36% instead of 40%. The company experienced SSS of growth of 28%.
The company release their 1Q11 guidance with an EPS range of $0.36-$0.38 and a 2011 EPS range of $1.90-$2.00. The streets estimates were $0.37 and $1.86. Jefferies is raising their FY11 EPS estimate to $2.10 from $1.86 and is introducing their FY12 at $2.71.
The firm reports that the underlying demand for the brand is accelerating at a faster pace than the company first expected. have. "However, we believe the inventory issue limits the degree of upside surprise to 1Q11 and possibly 2Q11, and earnings will not be as large as investors have grown accustomed to over the past seven quarters. Today's 4% correction creates a potentially attractive pull back, but we recommend waiting until at least June given the overhang on the stock."
For more ratings news on Lululemon Athletica Inc. click here and for the rating history of Lululemon Athletica Inc. click here.
Shares of Lululemon Athletica Inc. closed at $76.37 yesterday.
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