Ahead of Thursday's earnings report, analysts at Cowen and Company are recommending investors buy Lululemon Athletica inc. LULU. Cowen analysts point to the potential for comps to show "solid" growth prospects as the catalyst for the stock to move higher despite trading at a "premium."
In addition to the traditional retail metrics of earnings and same-store sales, Cowen will also be interested in the performance of Lululemon flagship stores that will not be factored into the year-over-year comp. Finally, Cowen expects Lululemon to expand to two new categories, one of which is the kitchen.
Cowen analysts said they understand the "intense competition in the athletic apparel space," but expect Lululemon will deliver on improved products, controlled markdowns and e-commerce gains.
Shares of Lululemon traded at $64, down more than 2.5 percent in premarket trading.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
date | ticker | name | Price Target | Upside/Downside | Recommendation | Firm |
---|
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.