- Morgan Stanley analyst Alex Straton reiterated an Overweight rating on the shares of Lululemon Athletica Inc LULU and raised the price target to $343 from $315.
- The company's Q2 earnings and Q3 guidance both were above Street expectations.
- Straton said the company's performance demonstrates its ability to outperform in a challenging environment.
- She noted that raised FY guidance stood out in a sea of Softlines Retail cuts and even embedded 2H22 performance deceleration.
- Straton added that the stock could see more growth, having bounced more than 10%, reversing nearly all of its declines since mid-August.
- She cited that Lululemon's inventory is the only thing to pick at, but she isn't raising alarm bells.
- Price Action: LULU shares are trading higher by 7.95% at $317.86 on the last check Friday.
© 2023 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.