UPDATE: Sterne Agee Downgrades Lululemon Athletica Following Signs of Leadership Alienating Customer Base
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
|Apr 2016||JP Morgan||Maintains||Overweight|
|Mar 2016||Goldman Sachs||Maintains||Sell|
© 2016 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.