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Deutsche Bank Reiterates Hold Rating, $65 PT on Lululemon Athletica on Valuation, Management Transitions

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In a report published Wednesday, Deutsche Bank analyst Dave Weiner reiterated a Hold rating and $65.00 price target on Lululemon Athletica (NASDAQ: LULU).

In the report, Deutsche Bank noted, “As discussed in our recent sector initiation (‘Despite market angst, we're positive on global apparel & footwear brands', 6/24) our HOLD balances positive themes which suggest that lulu may develop in to a global lifestyle brand over time, with concerns about key mgmt. transitions and valuation. While lulu has many opportunities including cat. extensions & a push in to Men's, for now we're focused on (1) forthcoming CEO & ‘Chief Merchant' hires and (2) the 5Y strategic roadmap. That said, we're cautious on a P/E of 35x F14 plan (32x ex Luon charge). $65 PT based on a LT EPS CAGR of 20%-25% & a 130% PE/G, in-line w/3Y avg.. Upside: comp >7%, downside: P/E feels lofty.”

Lululemon Athletica closed on Tuesday at $70.07.

Latest Ratings for LULU

DateFirmActionFromTo
Nov 2014Sterne AgeeDowngradesNeutralUnderperform
Nov 2014FBR CapitalInitiates Coverage onMarket Perform
Oct 2014Brean CapitalInitiates Coverage onBuy

View More Analyst Ratings for LULU
View the Latest Analyst Ratings

Posted-In: Dave Weiner Deutsche BankAnalyst Color Reiteration Analyst Ratings

 

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