Lululemon Athletica Inc. (LULU) PT Raised to $440 at BofA Securities
BofA Securities analyst Lorraine Hutchinson raised the price target on Lululemon Athletica Inc. (NASDAQ: LULU) to $440.00 (from $430.00) while maintaining a Buy rating.
The analyst comments "We reiterate our Buy rating and think LULU's improving innovation pipeline will result in accelerating sales trends, particularly as newness and product availability improves for the women's business in 2H. LULU reported 1Q EPS of $2.54, better than our $2.30 estimate led by sales (international +40% ccy, US +2%), a higher gross margin and interest income. Mgmt reiterated F24 guidance of 11-12% sales growth and 10bp of operating margin expansion; EPS guidance increased by $0.27 to $14.27-$14.47 to reflect share repurchases and higher interest income. We are raising our F24E EPS by $0.70 to $14.27 to reflect the 1Q beat, stronger sales, and higher interest income, and our PO from $430 to $440 (still based on 17x F25E EV/EBITDA)."