Oppenheimer Reiterates Outperform on Lululemon Athletica inc. Ahead of Earnings

Oppenheimer analyst Anna Andreeva came out with a few insights on Lululemon Athletica Inc. (NASDAQ:LULU), as the company will be reporting fourth-quarter earnings on Thursday, March 26th. The analyst reiterated an Outperform rating on the stock with a price target of $70, which represents a potential upside of 8.5% from where the stock is currently trading.

Andreeva noted, "We think near-term industry-wide weather/port issues likely affecting LULU—trimming 1Q15 by $0.02—longer-term story still sets up extremely well, in our view, with 1) top line momentum as LULU remains dominant brand in athletic (compares easy next 3 quarters); 2) LDD sq ft growth (US 2/3 penetrated, early on international); 3) Retail 101 under new leadership (go to market calendar, pricing, localization); 4) EBIT margins "stabilize" in '15 (Street modeling down 20 bps) and should expand in '16."

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 12.6% and a 69.4% success rate. Andreeva has a 36.7% average return when recommending LULU, and is ranked #393 out of 3544 analysts.

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