Market Overview

UPDATE: Sterne Agee Downgrades Lululemon Athletica Following Signs of Leadership Alienating Customer Base

Related LULU
Momentum Stocks Showing Weakness
Lululemon Athletica inc. Rallies But Fails To Impress Analysts
Making Money With Charles Payne: 09/11/14 (Fox Business)

In a report published Thursday, Sterne Agee analyst Sam Poser downgraded Lululemon Athletica (NASDAQ: LULU) from Buy to Underperform and moved the price target to $56.00.

In the report, Sterne Agee said, "The current valuation of over 27X 2014E is not sustainable as the company is alienating the customer. Recent comments from LULU's Chairman/founder, on top of shear and pilling problems, and the ongoing search for a new CEO lead us to the aforementioned conclusion. We see little risk to current trends but expect SSS deceleration in '14. Lowering 2014 EPS and SSS estimates from $2.49 and +8.2% to $2.33 and +6%. We are establishing a $56 PT."

Lululemon closed on Wednesday at $68.98.

Latest Ratings for LULU

DateFirmActionFromTo
Sep 2014CitigroupMaintainsNeutral
Sep 2014Deutsche BankMaintainsHold
Sep 2014JP MorganMaintainsNeutral

View More Analyst Ratings for LULU
View the Latest Analyst Ratings

Posted-In: Sam Poser Sterne AgeeAnalyst Color Downgrades Analyst Ratings

 

Related Articles (LULU)

Around the Web, We're Loving...

Partner Network

Get Benzinga's Newsletters