Lululemon Athletica Inc. (LULU) PT Lowered to $56 at Credit Suisse; Results Show Difficulty Driving Comps
Credit Suisse lowered its price target on Lululemon Athletica Inc. (NASDAQ: LULU) to $56.00 (from $64.00) while maintaining a Neutral rating.
Analyst Christian Buss said the soft guidance highlights the difficulty driving comps following last year's productivity recapture. She had seen store comps of 2- 3% for next year, but now sees flat to up 1%.
In addition, the analyst sees limited margin expansion for the year as the company continues to deleverage occupancy as store openings are weighted to lower productivity international regions.
The firm lowered FY17 revs to $2,516M from $2,573M, and EPS to and $2.29 from $2.51. FY18 revs goes to $2,772M from $2,826M and EPS to $2.57 from $2.84.