Nomura Securities Maintains a 'Neutral' on Lululemon Athletica (LULU); Lowers Estimates

Nomura Securities maintains a 'Neutral' on Lululemon Athletica Inc. (NASDAQ: LULU) price target of $43.00.

Nomura analyst, Paul Lejuez, said, "Reducing estimates primarily due to FX and difficult Canadian retail environment. Based on LULU’s 2Q results and recent results in the Canadian businesses of other retailers (TJX, LTD), we believe the consumer environment in Canada remains challenging. Although the company is not expanding its store base in Canada, it still represents nearly 50% of total revenues. In addition to the underlying weakness in the Canadian business, a stronger US dollar will likely pressure reported results. Our 2011E EPS goes from $1.19 to $1.17 and 2012E goes from $1.55 to $1.38."

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 $52.17 yesterday.

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