There’s a lot to be optimistic about in the Services sector as 3 analysts just weighed in on Lululemon Athletica Inc (NASDAQ: LULU), Foot Locker Inc (NYSE: FL) and Arrow Electronics (NYSE: ARW) with bullish sentiments.
Lululemon Athletica Inc (NASDAQ: LULU)
In a report released today, Anna Andreeva from Oppenheimer maintained a Buy rating on Lululemon Athletica Inc (NASDAQ: LULU), with a price target of $115. The company’s shares closed on Friday at $106.18, close to its 52-week high of $107.49.
Andreeva wrote:
“LULU is setting new highs, up 34% since end of March print (our universe up 9%) driven primarily by multiple expansion (’18 estimates up 8-9% during that time). While expectations aren’t low, product execution, in our view, keeps getting better (Love Tee franchise resonating <$50 AUR, bottoms still strong–Nulux, Tech Mesh) while markdowns look well managed (limited amounts in Much), suggesting upside to both sales and margins; we think buy-side already expects mid-teens comps (vs. guide for low-doubles) and continuation of double-digit momentum for remainder of '18, making set-up on the long side tricky. $3.70 (above and raising PT to $115 from $90; warehouse sale last July contributed 2- points to 2Q17 comp, making online compare tougher."
According to TipRanks.com, Andreeva is a 4-star analyst with an average return of 6.1% and a 51.6% success rate. Andreeva covers the Services sector, focusing on stocks such as Children’s Place, Urban Outfitters, and Foot Locker Inc.
Currently, the analyst consensus on Lululemon Athletica Inc is Moderate Buy and the average price target is $93.06, representing a -12.4% downside.
In a report issued on May 21, SunTrust Robinson also maintained a Buy rating on the stock with a $114 price target.
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Foot Locker Inc (NYSE: FL)
In a report released today, Mitch Kummetz from Pivotal Research assigned a Buy rating to Foot Locker Inc (NYSE: FL), with a price target of $64. The company’s shares closed on Friday at $55.74, close to its 52-week high of $60.64.
According to TipRanks.com, Kummetz is a 2-star analyst with an average return of 0.6% and a 57.6% success rate. Kummetz covers the Services sector, focusing on stocks such as Shoe Carnival, Genesco Inc, and Boot Barn.
Currently, the analyst consensus on Foot Locker Inc is Strong Buy and the average price target is $54.88, representing a -1.5% downside.
In a report issued on May 22, Canaccord Genuity also assigned a Buy rating to the stock with a $66 price target.
Arrow Electronics (NYSE: ARW)
Pivotal Research analyst Louis Miscioscia assigned a Buy rating to Arrow Electronics (NYSE: ARW) yesterday and set a price target of $98. The company’s shares closed on Friday at $74.22, close to its 52-week low of $72.31.
Miscioscia said:
“We recently spent a day with the Arrow management. The company is on a multi faced effort to expand out and be more of an IT solution provider, than just a distributor. Granted it still starts with distribution, and this area has been invested in with design engineers, digital assets and industry based solutions like IoT. All this has strategically positioned the company above the competition and has delivered strong results with share gains. As a baseline, if the semiconductor industry continues to grow 2-3x GDP, so should Arrow. If these investments show returns, we expect Arrow’s multiple to expand and our Buy rating is based on this. We reiterate our $98 PT, on a modest 11x PE multiple on our 2019 EPS of $9.10.”
Miscioscia has an average return of 2.8% when recommending Arrow Electronics.
According to TipRanks.com, Miscioscia is ranked #3916 out of 4810 analysts.
Arrow Electronics has an analyst consensus of Moderate Buy, with a price target consensus of $91.50.
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