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Oppenheimer Maintains Confidence In Lululemon After CEO's Resignation

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Oppenheimer Maintains Confidence In Lululemon After CEO's Resignation
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While the resignation of CEO Laurent Potdevin has caused an investor scare, Lululemon Athletica, Inc. (NASDAQ: LULU) has a “solid bench in place," an Oppenheimer analyst said. 

The Analyst

Analyst Anna Andreeva maintained an Outperform rating on Lululemon with an $88 price target. 

The Thesis

Executive Chairman Glenn Murphy will assume the role of interim CEO while Lululemon formally searches for a permanent replacement, Andreeva said in a Monday note.

Both Lululemon's COO and lead merchandising and design executive will retain their roles, while Celeste Burgoyne, EVP of Americas, will oversee the global consumer-facing business, the analyst said. 

While the abrupt nature of the announcement has put downward pressure on the stock, the rest of the athletic apparel maker's management remains stable, and the company stands to benefit from Murphy’s “solid operational experience," Andreeva said. 

Lululemon management has reiterated its fourth-quarter 2017 guidance and the company's long-term $4-billion sales goal.

Price Action

At the time of publication, Lululemon shares were trading down 0.34 percent at $77.14. 

Related Links:

10 Things To Like About Lululemon

Lululemon Set For 'Long-Term Profitable Growth,' Says Bullish Analyst

Photo from Wikimedia. 

Latest Ratings for LULU

DateFirmActionFromTo
Oct 2018WedbushUpgradesNeutralOutperform
Oct 2018Cowen & Co.MaintainsOutperformOutperform
Oct 2018RBC CapitalMaintainsOutperformOutperform

View More Analyst Ratings for LULU
View the Latest Analyst Ratings

Posted-In: Anna Andreeva Glenn Murphy Laurent Potdevin Oppenheimer retailAnalyst Color Reiteration Analyst Ratings Best of Benzinga

 

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