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Oppenheimer Sticks to Its Buy Rating for Lululemon Athletica Inc (LULU)


In a report released today, Brian Nagel from Oppenheimer reiterated a Buy rating on Lululemon Athletica Inc (LULU), with a price target of $190. The company’s shares closed yesterday at $131.44.

Nagel commented:

“Recently, as part of a significant revamping of our OpCo consumer coverage, we re-launched coverage of lululemon (LULU), reiterated our rating of Outperform, and lifted our price target on shares to $190 (from $180). As we examine closely the fiscal Q3 (Oct.) results and updated guidance that LULU reported last night (Dec. 6), we come away incrementally upbeat toward our positive call on shares. In our view, LULU represents a still up-and-coming consumer business model, now firing on all cylinders. In Q3 (Oct.), total company comparable sales, in constant dollars, rose an impressive 18% and helped to fuel a more than 30% increase in EPS. Key advances in product innovation and a focus on digital distribution are underpinning outsized expansion at the brand.”

According to TipRanks.com, Nagel is a 5-star analyst with an average return of 6.3% and a 58.3% success rate. Nagel covers the Services sector, focusing on stocks such as Weight Watchers International, Dick’s Sporting Goods, and Advance Auto Parts.

The word on The Street in general, suggests a Strong Buy analyst consensus rating for Lululemon Athletica Inc with a $176.57 average price target, implying a 34.3% upside from current levels. In a report issued on November 27, William Blair also maintained a Buy rating on the stock.

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Lululemon Athletica Inc’s market cap is currently $17.41B and has a P/E ratio of 51.14. The company has a Price to Book ratio of 13.18.

Based on the recent corporate insider activity of 31 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of LULU in relation to earlier this year. Most recently, in September 2018, Emily White, a Director at LULU bought 1,214 shares for a total of $58,709.

TipRanks has tracked 36,000 company insiders and found that a few of them are better than others when it comes to timing their transactions. See which 3 stocks are most likely to make moves following their insider activities.

lululemon athletica, Inc. engages in the design, distribution, and retail of athletic apparel and accessories. It company operates through the following segments: Company-Operated Stores, Direct to Consumer, and Other. The Company-Operated Stores segment comprises of lululemon and ivivva brands; and specialize athletic wear for female youth.