Analysts Offer Insights on Services Companies: Addus Homecare Corp (NASDAQ: ADUS) and Lululemon Athletica Inc (NASDAQ: LULU)

By Carrie Williams

Companies in the Services sector have received a lot of coverage today as analysts weigh in on Addus Homecare Corp (NASDAQ: ADUS) and Lululemon Athletica Inc (NASDAQ: LULU).

Addus Homecare Corp (NASDAQ: ADUS)

Oppenheimer analyst Michael Wiederhorn reiterated a Buy rating on Addus Homecare Corp (NASDAQ: ADUS) today and set a price target of $45. The company’s shares closed yesterday at $33.30.

Wiederhorn said:

“On the surface, Addus’ current valuation does not appear overly attractive, but after considering the company’s growth prospects, cash-rich balance sheet, and potential for M&A, the stock looks highly compelling in our view. Given the sudden access to capital, we believe M&A could contribute meaningfully over the coming years. Furthermore, the stock could get acquired by an insurer and deserves at least some type of takeout premium.”

According to TipRanks.com, Wiederhorn is a top 100 analyst with an average return of 15.8% and a 69.4% success rate. Wiederhorn covers the Services sector, focusing on stocks such as Cross Country Healthcare, Envision Healthcare, and Genesis Healthcare.

Addus Homecare Corp has an analyst consensus of Moderate Buy, with a price target consensus of $42.50.

Lululemon Athletica Inc (NASDAQ: LULU)

Susquehanna analyst Sam Poser reiterated a Hold rating on Lululemon Athletica Inc (NASDAQ: LULU) today and set a price target of $64. The company’s shares closed yesterday at $60.13.

According to TipRanks.com, Poser is a 4-star analyst with an average return of 6.4% and a 55.6% success rate. Poser covers the Consumer Goods sector, focusing on stocks such as Wolverine World Wide, Deckers Outdoor, and Steven Madden.

Currently, the analyst consensus on Lululemon Athletica Inc is Moderate Buy and the average price target is $63, representing a 4.8% upside.

In a report issued on August 23, Credit Suisse also maintained a Hold rating on the stock with a $56 price target.

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