Lululemon’s Neutral Rating Reaffirmed at DA Davidson (LULU)
Lululemon (NASDAQ:LULU)‘s stock had its “neutral” rating restated by analysts at DA Davidson in a research report issued to clients and investors on Friday, AnalystRatings.Net reports. They currently have a $73.00 price target on the stock, down from their previous price target of $76.00. DA Davidson’s price target would suggest a potential upside of 11.81% from the stock’s previous close.
The analysts wrote, “LULU reported constant currency comps, revenue and EPS of 8%, $344.5 million and $0.39. This compares to consensus revenue and earnings of $343.9 million and $0.35 and our estimates of $344.1 million and $0.35. 2Q guidance called for comps of 5%-7%, revenue of $340-$345 million, and EPS of $0.33-$0.35. Store revenue climbed 18% year-over-year (y/y), Direct-to-consumer increased 39%, and Other revenue was up 34%. Gross margin decreased 113bp y/y to 54.0% largely due to the lower mix of black luon pants and a higher inventory reserve. SG&A grew 25% to $107.0 million, deleveraging ~70bp to 31% of sales.”
Shares of Lululemon (NASDAQ:LULU) traded up 1.46% during mid-day trading on Friday, hitting $66.2425. 2,599,466 shares of the company’s stock traded hands. Lululemon has a 52 week low of $59.60 and a 52 week high of $82.50. The stock’s 50-day moving average is $70.77 and its 200-day moving average is $70.24. The company has a market cap of $9.575 billion and a price-to-earnings ratio of 35.29. Lululemon also was the recipient of unusually large options trading on Tuesday. Traders purchased 21,088 call options on the company. This represents an increase of 179% compared to the typical volume of 7,545 call options.
Lululemon (NASDAQ:LULU) last issued its quarterly earnings data on Thursday, September 12th. The company reported $0.39 earnings per share for the quarter, beating the analysts’ consensus estimate of $0.35 by $0.04. The company had revenue of $344.50 million for the quarter, compared to the consensus estimate of $342.70 million. During the same quarter last year, the company posted $0.39 earnings per share. Lululemon’s revenue was up 21.9% compared to the same quarter last year. On average, analysts predict that Lululemon will post $1.99 earnings per share for the current fiscal year.
A number of other firms have also recently commented on LULU. Analysts at Stifel Nicolaus cut their price target on shares of Lululemon (NASDAQ:LULU) from $85.00 to $80.00 in a research note to investors on Friday. They now have a “buy” rating on the stock. Separately, analysts at Credit Suisse upgraded shares of Lululemon (NASDAQ:LULU) from a “neutral” rating to an “outperform” rating in a research note to investors on Friday. Finally, analysts at Goldman Sachs Group Inc. reiterated a “neutral” rating on shares of Lululemon (NASDAQ:LULU) in a research note to investors on Thursday.
Two equities research analysts have rated the stock with a sell rating, ten have given a hold rating, twelve have given a buy rating and one has assigned a strong buy rating to the company. The stock has a consensus rating of “Hold” and an average target price of $74.82.
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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