Crypto Whales Are Loading Up — Are You?
New research shows the biggest crypto buyers are back. And this time? They could hold for the possibility that Bitcoin will surpass $100,000 in 2024. You don’t want to miss the next massive crypto bull run like we saw in 2020 and 2021. To know exactly what’s going on and what to buy… Get Access To Benzinga’s Best Crypto Research and Investments For Only $1.
Lululemon Athletica inc. (NASDAQ:LULU) reported fiscal third quarter results after the close Wednesday, highlighted by 14 percent top-line growth on the back of 8 percent comps growth. Adjusted earnings per share of 56 cents trumped the consensus estimate of 52 cents per share.
The company raised its revenue, comps, gross margin and adjusted earnings per share guidance for fiscal 2017.
Following the beat-and-raise quarter, Canaccord Genuity altered its bearish stance on Lululemon.
The Analyst
Canaccord Genuity analyst Camilo Lyon upgraded his rating on the shares of Lululemon Athletica from Sell to Hold and increased his price target from $43 to $70.
The Thesis
Lululemon Athletica's ability to innovate through industry headwinds is demonstrated by its results, and specifically the 24 percent comps it notched in women's pants category, analyst Lyon said in a Thursday note. (See Lyon's track record here.)
The analyst said his earlier Sell rating was predicated on a surging denim cycle, which was expected to take wallet share from a long-in-the-tooth athleisure cycle.
"Moreover, LULU's supply chain-driven gross margin realization story appears to have more chapters to it as evidenced by the 100bps of gross margin expansion in Q3 (vs. flat guidance) and a similar rate of expansion expected in Q4."
Overall, Canaccord Genuity sees the Q3 results as strong, with little to poke at.
The firm raised its 2018 earnings per share estimate to $2.86 and also its valuation multiples. With these two, the stock is already ahead of its new $70 price target, making a Hold rating appropriate, Lyon said.
The Price Action
Along with the positive reaction to the Q3 report, the stock is up about 13 percent year-to-date.
At the time of writing, Lululemon Athletica shares were rallying 7.92 percent to $73.02.
Related Links:
KeyBanc: 'Solid' Lululemon Q3 Shows E-Commerce Growth
10 Things To Like About Lululemon
Photo courtesy of Lululemon.
Crypto Whales Are Loading Up — Are You?
New research shows the biggest crypto buyers are back. And this time? They could hold for the possibility that Bitcoin will surpass $100,000 in 2024. You don’t want to miss the next massive crypto bull run like we saw in 2020 and 2021. To know exactly what’s going on and what to buy… Get Access To Benzinga’s Best Crypto Research and Investments For Only $1.
ENTER TO WIN $500 IN STOCK OR CRYPTO
Enter your email and you'll also get Benzinga's ultimate morning update AND a free $30 gift card and more!