UPDATE: Sterne Agee Upgrades Lululemon Athletica to Buy Following CEO/CFO Meetings
In a report published Wednesday, Sterne Agee analyst Sam Poser upgraded the rating on Lululemon Athletica (NASDAQ: LULU) from Neutral to Buy, and named a $90.00 price target.
In the report, Poser noted, “Following meetings with the CEO and CFO we would be buyers of LULU. The transparent pant problem is a serious growing pain, but should not cause long-term brand damage. There will be some new Luon pants delivered in June, but it will take to August to completely catch up. Lulu's relationship with its guests and its product innovation bear equal weight. 25%+ EBIT and long-term double-digit revenue growth appear sustainable. Raising '13/'14 EPS estimates from $1.89/$2.57 to $1.98/$2.71.”
Lululemon Athletica closed on Tuesday at $74.79.
Latest Ratings for LULU
|May 2015||RBC Capital||Initiates Coverage on||Outperform|
|Apr 2015||Sterne Agee||Upgrades||Neutral||Buy|
© 2015 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.