Analysts continue to recommend Lululemon Athletica (LULU) shares into earnings
- Futures inch lower on Fed policy caution, China data hits sentiment
- AI boom could continue to drive S&P 500 higher - Goldman
- Deutsche Bank, Wells Fargo expect US recession to start in Q4 2023
- Cathie Wood buys the dip in Coinbase shares amid SEC crackdown
- United Natural Foods (UNFI) cuts its forecast after FQ3 earnings miss; Shares crash 25%
Get Alerts LULU Hot Sheet
33 Buy, 9 Hold, 4 Sell
Rating Trend: Down
Today's Overall Ratings:
Up: 11 | Down: 8 | New: 12
Join SI Premium – FREE
News and research before you hear about it on CNBC and others. Claim your 1-week free trial to StreetInsider Premium here.
Lululemon Athletica (NASDAQ: LULU) outperformed peers yesterday on the back of positive comments from Wells Fargo analyst Ike Boruchow, who believes there is “too much negativity” priced in the shares.
“With sentiment the lowest seen in 5+ years, we identify key indicators we're watching for when LULU reports 4Q EPS. We remain confident in our bullish call on: 1) their ability to drive an on-algo FY (esp with China and reasonable NA assumptions), 2) improving inv-to-sales dynamics (inc improved recent checks) and 3) margin drivers (freight/markdowns) supporting GM expansion,” Boruchow wrote in client a note.
Moreover, the analyst likes LULU’s valuation as the stock looks cheap.
Lululemon is due to report earnings next Tuesday after market close.
The stock has received an additional boost after Goldman Sachs analyst Brooke Roach reiterated a Buy rating today, citing “innovation-led growth and sequentially improving inventory outlook.”
“Our checks remain constructive for brand heat and traffic, with customers continuing to engage with product and LULU issuing several new innovations in recent weeks which we believe could be a tailwind for brand momentum,” Roach said in a note.
The GS analyst sees an “attractive risk/reward at current levels, and see a constructive path for stock outperformance in coming quarters driven.”
While Roach acknowledges that Lululemon operates in a tough environment, the analyst believes that negatives are “now fully appreciated by investors, as the tone of our inbound client conversations has become decidedly more negative over the past few months.”
LULU shares are up 1% in pre-market Thursday and down 5.2% year-to-date (YTD).
By Senad Karaahmetovic
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Yext shares rally 16% on earnings/guidance beat and analyst upgrade
- Piper Sandler Upgrades Glaukos Corporation (GKOS) to Overweight; 'Several Exciting Launches Ahead'
- Canaccord Genuity Starts Aurora Innovation Inc (AUR) at Buy, 'strong, visionary management'
Create E-mail Alert Related CategoriesAnalyst Comments, Analyst EPS View, Hot Comments, Hot List
Related EntitiesGoldman Sachs, Earnings, Wells Fargo, Ike Boruchow, Senad Karaahmetovic
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!