Lululemon: Improving Sales And Traffic Augur Well For 2015, Says Wedbush

Wedbush analyst Morry Brown joined the crowd today, reiterating an Outperform rating on Lululemon Athletica (NASDAQ:LULU) and raising his price target to $59 (from $57), which represents a potential upside of 16% from where the stock is currently trading.

Brown wrote, “3Q results and QTD trends reinforce our view that LULU is on the cusp of a sales inflection accompanied by stabilizing margins. LULU continues to generate strong traffic (3Q tracked above 2Q’s +MSD levels) and is beginning to see improving conversion trends, buoying our confidence in a SSS acceleration against easing comparisons over the next three quarters.”

The analyst continued, “We believe accelerating sales and stable margins should drive the stock in 2015, accompanied by building anticipation in 2H15 of coming supply chain benefits and international growth in 2016.”

According to, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Morry Brown has a total average return of 3.5% and a 55.6% success rate. Brown is ranked #1776 out of 3403 analysts.

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