Lululemon (LULU) Expected to Rebound - Canaccord

Canaccord Genuity today maintained a Buy rating on Lululemon Athletica Inc. (NASDAQ: LULU) with a price target of $87.00. Shares declined yesterday after CEO Christine Day announced her eventual departure. In the view of analyst Camilo Lyon, Lululemon's culture and success are bigger than one person.

"[Day's] decision was in no way influenced by the product quality control issues. In fact, the Luon issues are completely resolved. Importantly, we expect her to stay in her CEO role through year end, ensuring no immediate disruptions to the normal course of business and a smooth transition with the forthcoming CEO," said Lyon.

"As the initial shock of her departure dissipates, and more comfort is gained in the succession plans, we expect the stock to rebound. As such, we reiterate our BUY as our fundamental growth thesis has not changed," added the analyst.

For an analyst ratings summary and ratings history on Lululemon Athletica Inc. (NASDAQ: LULU) click here. For more ratings news on Lululemon Athletica Inc. click here.

Shares of Lululemon Athletica Inc. closed at $67.85 yesterday.

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