Market Overview

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

Related LULU
Here Are The 14 Stocks Morgan Stanley Wants You To Focus On During Q2 Earnings
Watch These 7 Huge Put Purchases In Friday Trade
Skechers' Insiders Sold Stock Before Disappointing Quarterly Results (GuruFocus)

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

Jun 2016SunTrust Robinson HumphreyMaintainsBuy
May 2016Bank of AmericaReinstatesUnderperform
Apr 2016JP MorganMaintainsOverweight

View More Analyst Ratings for LULU
View the Latest Analyst Ratings

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


Related Articles (LULU)

View Comments and Join the Discussion!