Market Overview

Analysts Getting More Bullish on lululemon: Oppenheimer Upgrades, William Blair Sees Strong Growth

Share:

Shares of lululemon (NASDAQ: LULU) are trading up under a percent Tuesday afternoon following some bullish comments around the Street.

Anna Andreeva from Oppenheimer upgraded the stock from Perform to Outperform citing levers such as “double-digit square foot growth, double-digit growth online, and margin recovery over time” to fuel profit and sales growth.

Likewise, Sharon Zackfia from William Blair sees strong growth on the horizon as lululemon “yields an array of newness and excitement that has largely been lacking since the March 2013 sheer luon recall.” She feels consumer response “has been positive to lululemon's new product assortment, with some items selling out in a matter of days,” says Zackfia.

Zackfia's optimism takes a contrarian stance against “Street expectations [that] have become much more muted, with consensus expectations for roughly flat comps in the first quarter against a 7% year-ago comparison.”

Similar to Andreeva's call, Zackfia sees new management as a “wild card,” specifically when it comes to lululemon's return policy that was so controversial during the sheer luon incident.

The William Blair analyst maintains an Outperform rating on shares of lululemon.

In summary, both analysts at Oppenheimer and William Blair see investor focus returning to lululemon's aggressive growth approach as the March 2013 sheer luon recall fades into a distant memory.

Latest Ratings for LULU

DateFirmActionFromTo
Jan 2021Morgan StanleyMaintainsEqual-Weight
Dec 2020Morgan StanleyMaintainsEqual-Weight
Dec 2020Raymond JamesMaintainsStrong Buy

View More Analyst Ratings for LULU
View the Latest Analyst Ratings

 

Related Articles (LULU)

View Comments and Join the Discussion!

Posted-In: Analyst Color News Upgrades Price Target Analyst Ratings

Latest Ratings

StockFirmActionPT
TSLAJP MorganMaintains125.0
INTCTruist SecuritiesMaintains64.0
FBTruist SecuritiesMaintains320.0
GSCitigroupMaintains370.0
AAPLCowen & Co.Maintains153.0
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at vipaccounts@benzinga.com