Market Overview

Lululemon Gains In Face of Weak Indexes, Bearish Comments from UBS

Share:
Related LULU
The 10 Most Productive Retail Stores In The U.S.
Wedbush On Softlines: 'Encouraged' By Lululemon New Tops, Estimates Cut On Chico's, Urban Outfitters
3 Reasons Lululemon Could Move Up 15% In The Next Month (Seeking Alpha)

Shares of Lululemon (NASDAQ: LULU) are higher 1.6 percent to $48.42 in the face of weak broader indexes and bearish comments from UBS.

Analyst Roxanne Meyer believes selling, general and administrative expenses, as well as product and sourcing issues remain an overhang to the company.

The analyst expects Lululemon to step up investments in “supply chain/quality control, ecommerce, international expansion, design talent, and marketing” from last year's already significant investments.

“Should comps remain muted,” heightened investment could be a “sizable pressure point,” Meyer said.

While Meyer believes Lululemon is “a solid long-term growth story,” near-term risks are keeping her on the sidelines. The analyst believes new management will need time to “gel."

Meyer has a Neutral rating and $46 price target on the stock.

Latest Ratings for LULU

DateFirmActionFromTo
Jun 2015Canaccord GenuityMaintainsHold
Jun 2015CLSAUpgradesUnderperformBuy
Jun 2015TelseyMaintainsOutperform

View More Analyst Ratings for LULU
View the Latest Analyst Ratings

Posted-In: Roxanne Meyer UBSAnalyst Color Analyst Ratings

 

Related Articles (LULU)

Get Benzinga's Newsletters