B.Riley FBR Issues a Hold Rating on Lululemon Athletica Inc (LULU)

By Carrie Williams

B.Riley FBR analyst Susan Anderson assigned a Hold rating to Lululemon Athletica Inc (LULUResearch Report) today and set a price target of $176. The company’s shares closed last Monday at $188.41, close to its 52-week high of $194.25.

Anderson wrote:

“lululemon athletica (LULU) reported a solid beat with adjusted 2Q EPS of $0.96 v s. B. Riley FBR/ consensus estimates of $0.87/$0.89 and $0.86–$0.88 guidance. Results reflect +15% comps (+17% constant currency) vs. B. Riley F BR/consensus +11.0%/+12.2% and adjusted EBIT margin leverage of +47 bps vs. B. bps/+286 bps. Management provided 3Q19 adjusted EPS guidance of $0.90–$0.92 (vs. B. on SSS of +LT (vs. B. and updated 2019 guidance for adjusted EPS at $4.63–$4.70 (vs. B. and SSS of +LT (vs. B. Riley FBR/ consensus of +12.4%). We are impressed with LULU’s ability to continue to innovate and create newness with a solid new product pipeline, which is driving market share gains.”

According to TipRanks.com, Anderson is a 1-star analyst with an average return of -1.0% and a 40.4% success rate. Anderson covers the Consumer Goods sector, focusing on stocks such as Turning Point Brands, Columbia Sportswear, and G-III Apparel Group.

Currently, the analyst consensus on Lululemon Athletica Inc is a Moderate Buy with an average price target of $199.38.

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Based on Lululemon Athletica Inc’s latest earnings release for the quarter ending April 30, the company reported a quarterly net profit of $96.6 million. In comparison, last year the company had a net profit of $95.77 million.

Based on the recent corporate insider activity of 45 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of LULU in relation to earlier this year.

TipRanks has tracked 36,000 company insiders and found that a few of them are better than others when it comes to timing their transactions. See which 3 stocks are most likely to make moves following their insider activities.

lululemon athletica, Inc. engages in the designing, distributing and retail of athletic apparel and accessories. It company operates through the following business segments: Company-Operated Stores, Direct to Consumer. The Company-Operated Stores segment comprises of lululemon and ivivva brands; and specialize in athletic wear for female youth.