lululemon athletica (LULU) Given a $43.00 Price Target by Canaccord Genuity Analysts
lululemon athletica (NASDAQ:LULU) has been given a $43.00 price target by stock analysts at Canaccord Genuity in a research report issued to clients and investors on Tuesday. The brokerage currently has a “sell” rating on the apparel retailer’s stock. Canaccord Genuity’s target price points to a potential downside of 36.45% from the company’s current price.
The analysts wrote, “LULU will report FQ3 results on Wednesday, December 6 AMC. We are modeling a 4% comp and 52c in EPS (vs. consensus comp of 5.3% and EPS of 52c); however, we believe there could be upside of ~200bps to our comp assumption and ~2c-3c to EPS largely driven by continued strength in men’s and improving outerwear sales. That said, we believe buyside expectations are high (and uniformly positive), with comp expectations in the 6-7% range, leaving little room for topping an already elevated bar. As for gross margin, now that much of the company’s supply chain recapture work has been completed, we are looking for only modest GM expansion (+16bps vs. flat guidance), and during the quarter, we noticed persistently elevated levels of inventory on the company’s We Made Too Much page (e.g. over 300 women’s styles on sale during much of October), even despite lululemon having had its third warehouse sale this year, a physical sale in Ontario at the end of September. Separately, a month ago, news of Creative Director Lee Holman’s resignation (for personal reasons”) after just two years in the role should have been cause for concern (his predecessor lasted only two years as well), however, that was overshadowed by the CEO’s commentary that referenced momentum in the business entering the holiday season. Since that announcement, the stock has been up 5% vs. the XRT +12% (700bps of weaker relative performance). Taking it together, while we see the likelihood of a Q3 EPS beat, we continue to see mounting evidence of our denim fashion shift thesis taking shape over the next 4-6 quarters and thus would use any strength as a selling opportunity.””
LULU has been the topic of a number of other reports. BMO Capital Markets reiterated a “hold” rating and set a $55.00 target price on shares of lululemon athletica in a research report on Thursday, November 2nd. Zacks Investment Research lowered shares of lululemon athletica from a “buy” rating to a “hold” rating in a report on Tuesday, November 14th. Cowen restated an “outperform” rating and issued a $68.00 price objective (up from $67.00) on shares of lululemon athletica in a report on Friday, September 1st. Robert W. Baird restated a “buy” rating and issued a $72.00 price objective on shares of lululemon athletica in a report on Wednesday, October 4th. Finally, Deutsche Bank restated a “hold” rating and issued a $59.00 price objective on shares of lululemon athletica in a report on Friday, September 1st. Five analysts have rated the stock with a sell rating, seventeen have issued a hold rating, nineteen have assigned a buy rating and one has given a strong buy rating to the stock. The company currently has a consensus rating of “Hold” and an average price target of $66.10.
lululemon athletica (NASDAQ LULU) opened at $67.66 on Tuesday. lululemon athletica has a 12-month low of $47.26 and a 12-month high of $72.70. The stock has a market cap of $8,983.88, a P/E ratio of 30.44, a PEG ratio of 2.46 and a beta of 0.19.
lululemon athletica (NASDAQ:LULU) last announced its earnings results on Wednesday, December 6th. The apparel retailer reported $0.56 earnings per share (EPS) for the quarter, topping the Zacks’ consensus estimate of $0.52 by $0.04. lululemon athletica had a net margin of 11.68% and a return on equity of 22.51%. The company had revenue of $619.00 million for the quarter, compared to analyst estimates of $610.56 million. During the same period in the prior year, the business earned $0.50 earnings per share. lululemon athletica’s quarterly revenue was up 13.7% on a year-over-year basis. equities research analysts expect that lululemon athletica will post 2.43 EPS for the current fiscal year.
A number of institutional investors and hedge funds have recently bought and sold shares of LULU. Dimensional Fund Advisors LP increased its position in shares of lululemon athletica by 2.3% during the first quarter. Dimensional Fund Advisors LP now owns 284,524 shares of the apparel retailer’s stock worth $14,755,000 after acquiring an additional 6,448 shares in the last quarter. Russell Investments Group Ltd. increased its position in shares of lululemon athletica by 77.7% during the second quarter. Russell Investments Group Ltd. now owns 190,439 shares of the apparel retailer’s stock worth $11,363,000 after acquiring an additional 83,300 shares in the last quarter. Janney Montgomery Scott LLC increased its position in shares of lululemon athletica by 6.4% during the second quarter. Janney Montgomery Scott LLC now owns 23,918 shares of the apparel retailer’s stock worth $1,427,000 after acquiring an additional 1,449 shares in the last quarter. CIBC Asset Management Inc bought a new stake in shares of lululemon athletica during the second quarter worth $291,000. Finally, State of New Jersey Common Pension Fund D increased its position in shares of lululemon athletica by 11.4% during the second quarter. State of New Jersey Common Pension Fund D now owns 49,000 shares of the apparel retailer’s stock worth $2,924,000 after acquiring an additional 5,000 shares in the last quarter. Institutional investors own 79.45% of the company’s stock.
About lululemon athletica
lululemon athletica inc. is a designer, distributor and retailer of athletic apparel. The Company operates through two segments: Company-operated stores and Direct to consumer. It is also engaged in the sale from outlets, showrooms, sales from temporary locations, sales to wholesale accounts, warehouse sales, and license and supply arrangements.
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