Cowen Lowers Price Target on lululemon (LULU) to $52 on Weak Print, But Still Reasons to Remain Bullish

Cowen maintained an Outperform rating on Lululemon Athletica Inc. (NASDAQ: LULU), and cut the price target to $52.00 (from $62.00), following the company's 3Q earnings report. Focus remains on GM, which suffered on airfreight & markdowns. lululemon's women's business remains strong, with an acceleration in pant & bra categories. The re-launched pant wall hit stores at the beginning of 3Q, and customer response has been very positive, with women's pants comping +27% during the quarter.

Analyst Oliver Chen commented, "We are most encouraged w/select category outperformance (pants +27%, bras +18%), & believe oppty exists to perfect women's tops. Focus remains on GM, which suffered on airfreight & markdowns. Inventories +56% with an elevation to con’t in 4Q as in-transit levels increase, with normalization in 1Q."

For an analyst ratings summary and ratings history on Lululemon Athletica Inc. click here. For more ratings news on Lululemon Athletica Inc. click here.

Shares of Lululemon Athletica Inc. closed at $52.16 yesterday.

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