Guggenheim Sticks to Its Buy Rating for Lululemon Athletica Inc (LULU)

By Austin Angelo

In a report released today, Robert Drbul from Guggenheim maintained a Buy rating on Lululemon Athletica Inc (LULUResearch Report), with a price target of $220. The company’s shares closed last Monday at $188.41, close to its 52-week high of $194.25.

Drbul noted:

“We believe the results demonstrate continued momentum in the business globally. LULU continues to drive outsized results across its portfolio, and we are encouraged by the continued momentum on top of quite challenging YoY comparisons (+36% 2-year CC comp, up 1pt QoQ). Given our belief LULU should drive continued top- line strength, with the brand pursuing a significant global opportunity, we remain BUY- rated and raise our PT to $220 (from $200) on our higher top-line/earnings forecasts for FY19E/FY20E post-2Q.”

According to TipRanks.com, Drbul is a 5-star analyst with an average return of 6.9% and a 64.2% success rate. Drbul covers the Services sector, focusing on stocks such as National Vision Holdings Inc, Capri Holdings Limited, and Ascena Retail Group.

The word on The Street in general, suggests a Moderate Buy analyst consensus rating for Lululemon Athletica Inc with a $194.95 average price target, implying a 6.0% upside from current levels. In a report issued on August 27, William Blair also reiterated a Buy rating on the stock.

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Lululemon Athletica Inc’s market cap is currently $23.54B and has a P/E ratio of 47.50. The company has a Price to Book ratio of 17.23.

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.

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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.