Lululemon Athletica Inc Receives a Buy from Guggenheim

By Carrie Williams

Guggenheim analyst Robert Drbul assigned a Buy rating to Lululemon Athletica Inc (NASDAQ: LULU) yesterday and set a price target of $125. The company’s shares closed yesterday at $105.05, close to its 52-week high of $107.68.

Drbul commented:

“We believe the results demonstrate the continued momentum in the business and that the lululemon brand is gaining strength (+19% 1Q comp vs. our +12% est.; CC), globally; we continue to see ample growth opportunity ahead, led by Int’l and digital (+60% comp, CC). Momentum has carried into 2Q18, and we raise our 2Q comp sales estimate to +9% (from +7%; CC). We expect continued GM gains (+265bps in 1Q), on tough comparisons, and expense leverage to drive continued earnings power. We raise our PT to $125 from $90.”

According to, Drbul is a 5-star analyst with an average return of 16.8% and a 79.6% success rate. Drbul covers the Services sector, focusing on stocks such as National Vision Holdings Inc, Ascena Retail Group, and Wal-Mart Stores Inc.

Currently, the analyst consensus on Lululemon Athletica Inc is Moderate Buy and the average price target is $98, representing a -6.7% downside.

In a report issued on May 21, SunTrust Robinson also maintained a Buy rating on the stock with a $114 price target.

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The company has a one-year high of $107.68 and a one-year low of $51.30. Currently, Lululemon Athletica Inc has an average volume of 2.04M.

Based on the recent corporate insider activity of 31 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of LULU in relation to earlier this year. Most recently, in March 2018, Martin Michael Casey, a Director at LULU bought 11,852 shares for a total of $169,365.

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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.