D.A. Davidson Has Positive Outlook On Lululemon Athletica Ahead Of Earnings

In a report published Tuesday, D.A. Davidson analyst Andrew Burns reiterated a Neutral rating and $47.00 price target on Lululemon Athletica LULU ahead of the company's earnings report on Thursday, December 11. In the report, D.A. Davidson noted, “We are encouraged by 3Q store checks that revealed improvement vs. 1H14 in our view. While LULU's execution is recovering, brands such as Nike (NKE—NEUTRAL—$97.67) and Under Armour (UA— NEUTRAL—$68.67) as well as retail concepts such as Athleta and Lorna Jane have been busy improving product and opening stores. We believe the competition has dramatically intensified over the last few years and has to be viewed as impactful going forward. Looking to 2015, we believe LULU will maintain its premium positioning and brand luster, but expect the combination of growing competition and international growth investments will mute earnings growth prospects.” Lululemon Athletica closed on Monday at $44.93.