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Lululemon Athletica (LULU) PT Raised to $75 at Oppenheimer

December 8, 2016 9:06 AM EST
Get Alerts LULU Hot Sheet
Price: $393.74 +1.10%

Rating Summary:
    32 Buy, 11 Hold, 3 Sell

Rating Trend: Down Down

Today's Overall Ratings:
    Up: 13 | Down: 10 | New: 11
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Oppenheimer analyst Anna Andreeva reiterated an Outperform rating and lifted her price target on Lululemon Athletica Inc. (NASDAQ: LULU) to $75.00 (from $70.00) following solid results.

Andreeva commented, "LULU was un-loved coming into the print (down 22% off in-line quarter back in September, SPX up 3%, two downgrades last few weeks), yet brand equity continues to shine, with strong comp (+7%) and gross margins (up 400+ bps). Traffic while still negative didn't get worse, and company isn't embedding improvement in '17, with conversion/higher AUR and category opportunities (tops, bras, men's) carrying consistent MSD comp. Coupled with 10% sq ft growth, LULU is still one of rare 13-15% top-line growth stories in consumer, with bottom-line inflection finally following (first up EBIT margin quarter since 4Q12), despite athletic landscape losing some steam. Raising EPS/PT; assuming low-20's EBIT margin (modeling 19.7% for '17), earnings power of $4+ could come sooner than 2020 plans."

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 $59.84 yesterday.



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