Lululemon Lowered to Neutral at Sterne Agee (LULU)
Lululemon (NASDAQ: LULU) was downgraded by research analysts at Sterne Agee from a “buy” rating to a “neutral” rating in a report released on Tuesday, TheFlyOnTheWall.com reports. They currently have a $75.00 price target on the stock, down from their previous price target of $90.00. Sterne Agee’s price target suggests a potential downside of 8.85% from the stock’s previous close.
The analysts wrote, “We believe that the cultural cohesiveness that Ms. Day brought to LULU will be very difficult to replace. We are comfortable that Ms. Day, as she said, will remain at the helm and fully engaged until her replacement is comfortably in place. Nonetheless, the change in leadership is disruptive. On top of Ms. Day’s pending departure is the need for three key positions within the organization to be filled: the SVPs of Product Design & Merchandise, of Logistics, and of Product and Supply Chain. Despite the fact that we are raising estimates and believe that 2013 guidance will prove conservative, and that Ms. Day believes that a solid 5-year plan and a 10- year vision are in place, the lack of information regarding the future leadership of LULU is of great concern.”
Shares of Lululemon (NASDAQ: LULU) traded down 16.54% during mid-day trading on Tuesday, hitting $68.67. Lululemon has a one year low of $52.20 and a one year high of $81.09. The stock’s 50-day moving average is currently $67.05. The company has a market cap of $9.918 billion and a P/E ratio of 44.48.
Lululemon (NASDAQ: LULU) last announced its earnings results on Monday, June 10th. The company reported $0.32 earnings per share for the quarter, beating the analysts’ consensus estimate of $0.30 by $0.02. The company had revenue of $345.80 million for the quarter, compared to the consensus estimate of $341.11 million. During the same quarter last year, the company posted $0.32 earnings per share. Lululemon’s revenue was up 21.0% compared to the same quarter last year. Lululemon has set its Q2 guidance at $0.33-0.35 EPS and its FY14 guidance at $1.96-2.01 EPS. Analysts expect that Lululemon will post $1.99 EPS for the current fiscal year.
A number of other analysts have also recently weighed in on LULU. Analysts at Janney Montgomery Scott cut their price target on shares of Lululemon from $89.00 to $87.00 in a research note to investors on Tuesday. They now have a “buy” rating on the stock. Separately, analysts at Credit Agricole upgraded shares of Lululemon from a “sell” rating to an “underperform” rating in a research note to investors on Friday. Finally, analysts at Telsey Advisory Group raised their price target on shares of Lululemon to $85.00 in a research note to investors on Thursday, June 6th.
Three equities research analysts have rated the stock with a sell rating, nine have given a hold rating, nine have given a buy rating and one has assigned a strong buy rating to the company’s stock. The stock currently has an average rating of “Hold” and a consensus price target of $78.09.
Manufactures, distributes and sells technical athletics and yoga apparel. The Company works in cooperation with various athletes to create designs specific to meet their needs.
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