Topeka Starts lululemon at Buy, $70 Target, Says 'Remains Bright Spot' in Specialty Retail
Topeka Capital's Dorothy Lakner initiated coverage on shares of lululemon athletica (NASDAQ: LULU) with a Buy rating and $70 price target Thursday afternoon.
Lakner noted recent "product problems and management changes this year," but believes lululemon "remains a bright spot of growth in specialty retailing." The analyst believes lululemon targeting an "underserved women's athletic market is a positive, and while competition is increasing, LULU still has a loyal customer base for its stylish, premium-priced product, a strong company culture and is one of few specialty retailers growing at 15%-20%."
With shares of lululemon trading at $58.77 in Thursday's post-market session, the Topeka analyst's new price target implies potential upside of about 19 percent.
Latest Ratings for LULU
|May 2016||Bank of America||Reinstates||Underperform|
|Apr 2016||JP Morgan||Maintains||Overweight|
|Mar 2016||Goldman Sachs||Maintains||Sell|
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