Market Overview

UPDATE: Bank of America Lowers PT on Lululemon; Stating Quality Issues

Share:
Related LULU
Stocks Hitting 52-Week Highs
Morning Market Gainers
Hanesbrands Beats Q4 Earnings, Issues FY15 Outlook - Analyst Blog (Zacks)

Bank of America analyst Lorraine Hutchinson published a report on Lululemon (NASDAQ: LULU) that lowered it's price target from $63 to $60 and maintained its Underperform rating after quality issues found in core product.

In the report Bank of America said, "Lululemon announced that it has a quality problem in its core women's black pants and crops (the fabric is too sheer), and that it will pull these products from shelves. This will negatively impact sales; 1Q comps were up 11% until the company pulled the pants from stores, and now lulu expects 1Q comps in a range of +5-8%, and sales of $333-343mn. We are reducing our F2013 EPS estimate by $0.05 to $2.10 to reflect the sales impact and a drag on gross margin."

Lululemon closed Monday at $65.90.

Latest Ratings for LULU

DateFirmActionFromTo
Jan 2015JP MorganUpgradesNeutralOverweight
Jan 2015CLSADowngradesBuyOutperform
Jan 2015NomuraMaintainsBuy

View More Analyst Ratings for LULU
View the Latest Analyst Ratings

Posted-In: Bank of AmericaAnalyst Color Price Target Analyst Ratings

 

Related Articles (LULU)

Around the Web, We're Loving...

Get Benzinga's Newsletters