Oppenheimer Reiterates Outperform On Lululemon Athletica Following Investor Meetings


In a research report issued today, Oppenheimer analyst Anna Andreeva reiterated an Outperform rating on Lululemon Athletica (NASDAQ:LULU) with a $53 price target, following investor meetings with John Currie, CFO, and Chris Tham, VP Financial Planning.

Andreeva noted, “LULU is in midst of progression from early stage designled organization with new team establishing guardrails to gain efficiencies–i.e., new processes/systems. While competition has undoubtedly grown since company’s firstmover advantage positioning, athletic market still growing at HSD clip, and LULU is focused on maintaining its premier place at “top of pyramid.” We view Advent International’s involvement as additive (easier to attract talent with stable corporate level), plus new team appears to gel with CPO Poseley affecting depth of buys for 2H14 (full influence spring ’15). While LULU remains in “show me” camp, at 20x ’15 est. for premier brand, valuation is embedding concerns-vs. opportunity.”

According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Anna Andreeva has a total average return of -1.8% and a 27.8% success rate. Andreeva has a -7.9% average return when recommending LULU, and is ranked #2474 out of 3335 analysts.

 

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