Market Overview

Lululemon 'Continues To Make The Right Investments,' Citi Says In Upgrade

Lululemon 'Continues To Make The Right Investments,' Citi Says In Upgrade

Lululemon Athletica inc. (NASDAQ: LULU) is a brand on the rise, according to Citi. 

The Analyst 

Analyst Paul Lejuez upgraded Lululemon from Neutral to Buy with a $152 price target.

The Thesis

In recent months, fears of a macro slowdown have taken winning brands down with the rest of the group and Lululemon has been a victim, Lejuez said in the Wednesday upgrade note.

Yetthe story remains one of improving fundamentals and standout growth prospects, the analyst said. 

“We get the macro concerns, but we think this is a brand to own in uncertain times — one with the strongest brand positioning, comp momentum, international prospects, margins and ROIC in our coverage."

Lululemon has delivered high-teen comps several quarters in row, but no specific product is responsible for the brand's momentum, he said. 

“LULU continues to post strong comps in developed categories, is developing loyalty with men and has permission from women and men to expand into new categories. They have made the right investments over the past several years to put them in this enviable position today, and they continue to make the right investments to drive continued impressive comp/sales results in the future."

It's important to view Lululemon’s comp increases in a broader context of the company taking the business to new levels rather than facing tough comparisons driven by any one particular product, the analyst said.

Lululemon remains a brand that is still on the rise, but now at a lower price, providing an attractive entry point, according to Citi. 

Price Action

Lululemon shares were up nearly 5 percent at $122.65 at the time of publication Wednesday.

Related Links:

Lululemon Has Room For Valuation, Earnings Upside This Year

Analyst Stretches Lululemon's Price Target After Meeting With New CEO

Latest Ratings for LULU

Sep 2019Initiates Coverage OnOverweight
Sep 2019MaintainsOutperform
Sep 2019ReiteratesBuy

View More Analyst Ratings for LULU
View the Latest Analyst Ratings

Posted-In: Apparel Citi Paul LejeuzAnalyst Color News Upgrades Price Target Analyst Ratings Best of Benzinga


Related Articles (LULU)

View Comments and Join the Discussion!

Latest Ratings

YEXTMorgan StanleyMaintains15.0
WKMorgan StanleyMaintains42.0
RAMPMorgan StanleyMaintains58.0
PDMorgan StanleyMaintains34.0
HTHTDaiwa CapitalDowngrades
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Trading Daily
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.
Daily Analyst Rating
A summary of each day’s top rating changes from sell-side analysts on the street.
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

DSW Delivers Strong Quarter, But Camuto Acquisition Keeps Canaccord Neutral

Wells Fargo Shares Takeaways From Canopy Growth CEO's New York Presentation