Oppenheimer Remains a Buy on Lululemon Athletica Inc

By Ryan Adsit

Oppenheimer analyst Anna Andreeva maintained a Buy rating on Lululemon Athletica Inc (NASDAQ: LULU) yesterday and set a price target of $75. The company’s shares closed yesterday at $67.66.

Andreeva said:

“With two solid quarters in a row (in 3Q17, two-year comp stack improved, EPS growth accelerated to +19%), LULU’s full-year expectations are now above original ’17 guide (EPS 6-7% higher at the mid-point); strong momentum continues into 4Q17 (think comps running above MSD comp guide), with positive US store traffic QTD (negative since 3Q16). Off November lows, LULU has lagged our universe (up only 9%, group up 16%); trading at ~23x (same multiple as NKE), shares set up well into ’18, in our view, given scarcity value of combination of double-digit sales and earnings growth (modeling 13-15% EPS growth); easy compare in 1Q18 (comps down 1% LY) presents an opportunity.”

According to TipRanks.com, Andreeva is a 4-star analyst with an average return of 5.1% and a 52.4% success rate. Andreeva covers the Services sector, focusing on stocks such as Ascena Retail Group, Abercrombie Fitch, and Children’s Place.

Currently, the analyst consensus on Lululemon Athletica Inc is Moderate Buy and the average price target is $66.30, representing a -2.0% downside.

In a report issued on November 30, Susquehanna also assigned a Buy rating to the stock with a $71 price target.

Lululemon Athletica Inc’s market cap is currently $8.99B and has a P/E ratio of 32.53. The company has a book value ratio of 6.5577.

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Lululemon Athletica, Inc. designs and retails athletic apparels primarily in North America and Australia. It offers a line of apparel and accessories, including fitness pants, shorts, tops and jackets designed for athletic pursuits such as yoga, running and general fitness.