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Lululemon Athletica Inc. (LULU) PT Lowered to $75 at MKM Partners Following 4Q

March 30, 2017 10:09 AM

MKM Partners lowered its price target on Lululemon Athletica Inc. (NASDAQ: LULU) to $75.00 (from $90.00) while maintaining a Buy rating following the company's 4Q. Higher than expected sales and gross margin were offset by higher SG&A. However, the 1Q/FY comp and earnings outlook was below expectations.

Analyst Roxanne Meyer believes that this is an attractive entry point for LULU, and expects a recovery. The comp miss was due to a self-inflicted fashion issue that is viewed as temporary. MKM remains confident in +MSD comp growth and 20%+ EBIT margins longer-term.

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