Lululemon Athletica Inc. (LULU) PT Lowered to $65 at Oppenheimer Following 4Q
Oppenheimer lowered its price target on Lululemon Athletica Inc. (NASDAQ: LULU) to $65.00 (from $75.00) while maintaining a Outperform rating. LULU reported a 4Q beat driven by strength in product margin. However, the consumer wants more fashion/newness as LULU shares trade down 18%, with earnings moving down ~10%.
Analyst Anna Andreeva believes that while stock is reacting, it has only been two months of product not resonating after very strong holiday. LULU's brand equity in still remains intact; with double-digit square footage growth, LULU still warrants a premium.