Lululemon Athletica (LULU) Upgraded by Zacks Investment Research to Buy
Zacks Investment Research upgraded shares of Lululemon Athletica (NASDAQ:LULU) from a hold rating to a buy rating in a report released on Friday. The brokerage currently has $88.00 target price on the apparel retailer’s stock.
According to Zacks, “Lululemon has outperformed the industry in the past three months mainly attributable to robust surprise trend driven by progress on its strategy for 2020 and focus on ivivva’s remodeling. While third-quarter fiscal 2017 marked the company’s third consecutive earnings beat, sales topped estimates for the eighth straight quarter. Moreover, the company emerged strong this holiday season driven by accelerating trends across all parts of its businesses. Further, the company anticipates business strength and current trends to sustain throughout 2018 and beyond. This led it to raise revenue and earnings forecasts for fourth-quarter fiscal 2017. Estimates have been trending up ahead of the fourth quarter results. However, the company expects to record a significant income tax charge in the fourth quarter related to a one-time deemed repatriation tax on foreign earnings. Further, rise in competition has been a threat to margins.”
Several other research analysts also recently commented on LULU. Oppenheimer reissued an outperform rating and issued a $68.00 price objective on shares of Lululemon Athletica in a research note on Tuesday, October 10th. Needham & Company LLC set a $69.00 target price on Lululemon Athletica and gave the stock a buy rating in a research note on Monday, October 16th. SunTrust Banks set a $69.00 target price on Lululemon Athletica and gave the stock a buy rating in a research note on Monday, October 16th. Canaccord Genuity set a $43.00 target price on Lululemon Athletica and gave the stock a sell rating in a research note on Monday, October 16th. Finally, Citigroup raised Lululemon Athletica from a neutral rating to a buy rating and cut their target price for the stock from $61.50 to $60.09 in a research note on Friday, October 20th. One analyst has rated the stock with a sell rating, eighteen have issued a hold rating, nineteen have assigned a buy rating and one has assigned a strong buy rating to the company. The company currently has a consensus rating of Buy and an average price target of $73.59.
Lululemon Athletica (NASDAQ:LULU) last posted its quarterly earnings data on Wednesday, December 6th. The apparel retailer reported $0.56 EPS for the quarter, beating the Thomson Reuters’ consensus estimate of $0.52 by $0.04. Lululemon Athletica had a return on equity of 22.52% and a net margin of 10.96%. The firm had revenue of $619.00 million during the quarter, compared to the consensus estimate of $610.56 million. During the same period in the prior year, the company earned $0.50 EPS. The firm’s revenue was up 13.7% compared to the same quarter last year. research analysts anticipate that Lululemon Athletica will post 2.53 EPS for the current year.
Lululemon Athletica declared that its board has authorized a share repurchase program on Wednesday, December 6th that allows the company to buyback $200.00 million in shares. This buyback authorization allows the apparel retailer to purchase shares of its stock through open market purchases. Stock buyback programs are often an indication that the company’s management believes its stock is undervalued.
Several hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Janus Henderson Group PLC grew its holdings in shares of Lululemon Athletica by 16,053.2% during the 2nd quarter. Janus Henderson Group PLC now owns 2,614,550 shares of the apparel retailer’s stock worth $156,010,000 after purchasing an additional 2,598,364 shares during the period. State Street Corp grew its holdings in shares of Lululemon Athletica by 0.8% during the 2nd quarter. State Street Corp now owns 2,113,129 shares of the apparel retailer’s stock worth $126,101,000 after purchasing an additional 16,821 shares during the period. Bank of New York Mellon Corp boosted its holdings in Lululemon Athletica by 132.6% during the 3rd quarter. Bank of New York Mellon Corp now owns 1,014,384 shares of the apparel retailer’s stock valued at $63,146,000 after acquiring an additional 578,248 shares during the period. Jennison Associates LLC boosted its holdings in Lululemon Athletica by 37.6% during the 4th quarter. Jennison Associates LLC now owns 839,936 shares of the apparel retailer’s stock valued at $66,011,000 after acquiring an additional 229,552 shares during the period. Finally, Lodge Hill Capital LLC boosted its holdings in Lululemon Athletica by 2.7% during the 3rd quarter. Lodge Hill Capital LLC now owns 688,170 shares of the apparel retailer’s stock valued at $42,839,000 after acquiring an additional 18,170 shares during the period. Institutional investors and hedge funds own 79.70% of the company’s stock.
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Lululemon Athletica Company Profile
lululemon athletica inc. is a designer, distributor and retailer of athletic apparel. The Company operates through two segments: Company-operated stores and Direct to consumer. It is also engaged in the sale from outlets, showrooms, sales from temporary locations, sales to wholesale accounts, warehouse sales, and license and supply arrangements.
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