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Lululemon Stock Is Soaring After Earnings. Why Analysts Are Bullish.
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Main points
- Lululemon shares rose a day after the company reported third-quarter results that beat expectations and raised its full-year forecast.
- Several analysts raised their price targets for Lululemon, pointing to growth in the U.S. and international markets, particularly in China.
- Lululemon is positioned to add new customers and increase revenue per customer, Stifel analysts said.
Lululemon (Lulu) Friday, a day after sportswear company shares soared Beats third-quarter earnings expectationsanalysts also gave bullish price targets.
Morgan Stanley said results and full-year results improved Forecasts from companies“, “With U.S. economic growth stabilizing (and) women’s economic growth and China’s economic growth accelerating, bears have little left to count on. ” The company reiterated its “overweight” rating and upgraded its rating. price target to $414.
Lululemon raised its full-year revenue forecast to a range of US$10.452 billion to US$10.487 billion from the previous range of US$10.375 billion to US$10.475 billion.
Analysts call Lululemon’s growth ‘unique’
Stifel analysts raised their target price to $438 from $370 and maintained a “buy” rating. This represents a premium of approximately 7% lululemon The stock soared 18% on Friday, hitting an intraday high of about $408.
“We view LULU as uniquely positioned at the intersection of secular trends and believe the contribution from international growth is undervalued,” Stifel analysts said in a report Thursday. “The company is likely to grow by adding new customers and growing revenue.” maintain strong growth” income per customer.
Analyst optimism is at Chief Executive Officer (CEO) Calvin McDonald admitted the company last quarter “New” questionsthere are fewer seasonally updated products, resulting in lower conversion rates.
Most recently, Lululemon’s shares were up about 16% on Friday afternoon, to $401.52, but have lost more than a fifth of their value in 2024.
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