Sterne Agee Has Neutral On Lululemon

Sterne Agee is out with a research report on lululemon athletica inc. LULU and it has a Neutral rating on shares. In a note to clients, Sterne Agee writes, "While we continue to have high conviction in LULU's long-term growth prospects (expansion into new product categories, pursuit of the youth market and potentially international expansion) and would look at pockets of weakness as potential buying opportunities, the shares appear fully valued at these levels relative to our one-year investment horizon. LULU shares are currently trading at 38.5x our FY12 estimate, or an 8% discount to the two-year historical forward average of 42.0x FY1 estimates." Shares of LULU closed at $53.15.