lululemon athletica (LULU) Upgraded to Buy at Zacks Investment Research
Zacks Investment Research upgraded shares of lululemon athletica (NASDAQ:LULU) from a hold rating to a buy rating in a report released on Monday morning. They currently have $81.00 target price on the apparel retailer’s stock.
According to Zacks, “Lululemon has outperformed the industry in the past three months mainly attributable to robust surprise trend driven by progress on its strategy for 2020 and focus on ivivva’s remodeling. While third-quarter fiscal 2017 marked the company’s third consecutive earnings beat, sales topped estimates for the eighth straight quarter. Results were driven by consumers’ favorable response to Lululemon’s product innovations, solid direct-to-consumer sales, focus on supply chain initiatives and commitment to long-term strategy. Further, comps improved driven by strength in e-commerce. These factors along with solid initial holiday season momentum across business channels led the company to provide an encouraging view for the fourth quarter and raise guidance for fiscal 2017. However, stiff competition and volatile consumer spending patterns may pose concerns. The rise in competition has been a threat to margins.”
LULU has been the subject of several other research reports. Canaccord Genuity set a $41.00 price target on shares of lululemon athletica and gave the company a sell rating in a report on Tuesday, August 29th. BMO Capital Markets reiterated a hold rating and issued a $55.00 price target on shares of lululemon athletica in a report on Thursday, November 2nd. Cowen reiterated an outperform rating and issued a $68.00 price target (up previously from $67.00) on shares of lululemon athletica in a report on Friday, September 1st. Robert W. Baird reiterated a buy rating and issued a $72.00 price target on shares of lululemon athletica in a report on Wednesday, October 4th. Finally, Deutsche Bank restated a hold rating and set a $59.00 target price on shares of lululemon athletica in a report on Friday, September 1st. Three analysts have rated the stock with a sell rating, nineteen have issued a hold rating, eighteen have assigned a buy rating and one has assigned a strong buy rating to the company’s stock. lululemon athletica has a consensus rating of Hold and a consensus price target of $70.21.
lululemon athletica (NASDAQ:LULU) last issued its quarterly earnings data on Wednesday, December 6th. The apparel retailer reported $0.56 earnings per share (EPS) for the quarter, beating the Zacks’ consensus estimate of $0.52 by $0.04. The firm had revenue of $619.00 million during the quarter, compared to analysts’ expectations of $610.56 million. lululemon athletica had a net margin of 10.96% and a return on equity of 22.52%. The business’s revenue for the quarter was up 13.7% on a year-over-year basis. During the same quarter in the previous year, the company earned $0.50 earnings per share. equities research analysts predict that lululemon athletica will post 2.48 earnings per share for the current fiscal year.
lululemon athletica declared that its board has approved a share repurchase program on Wednesday, December 6th that allows the company to buyback $200.00 million in outstanding shares. This buyback authorization allows the apparel retailer to repurchase shares of its stock through open market purchases. Shares buyback programs are usually an indication that the company’s board believes its shares are undervalued.
Large investors have recently added to or reduced their stakes in the stock. IHT Wealth Management LLC grew its stake in lululemon athletica by 591.0% during the second quarter. IHT Wealth Management LLC now owns 1,382 shares of the apparel retailer’s stock worth $105,000 after buying an additional 1,182 shares in the last quarter. Zions Bancorporation boosted its stake in shares of lululemon athletica by 183.2% in the 3rd quarter. Zions Bancorporation now owns 2,096 shares of the apparel retailer’s stock valued at $130,000 after purchasing an additional 1,356 shares in the last quarter. Thompson Siegel & Walmsley LLC acquired a new stake in shares of lululemon athletica in the 3rd quarter valued at approximately $156,000. Global X Management Co. LLC boosted its stake in shares of lululemon athletica by 39.7% in the 2nd quarter. Global X Management Co. LLC now owns 2,532 shares of the apparel retailer’s stock valued at $151,000 after purchasing an additional 719 shares in the last quarter. Finally, Oakbrook Investments LLC acquired a new stake in shares of lululemon athletica in the 3rd quarter valued at approximately $202,000. 79.45% of the stock is currently owned by institutional investors and hedge funds.
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lululemon athletica Company Profile
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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