JIANG_LIM
09-06
$Lululemon Athletica(LULU)$  

Lululemon fell almost 18% in one day. 

Big reasons:

• They cut their full-year forecast again.

• U.S. sales only grew 1%, which is weak.

• Tariffs are hitting profits, costing them about $240M this year.

• Analysts rushed to downgrade. Some even put price target at $150.

That’s why the stock sank. But at today’s price, valuation looks much lower than before. If sales improve or holiday season is strong, it could bounce.


Analysts Adjust Price Targets and Ratings for Lululemon Athletica
Several financial analysts, including TD Cowen, Needham, BTIG Research, JP Morgan, Wells Fargo, Citigroup, Barclays Capital, Piper Sandler, and Oppenheimer, have adjusted their price targets for Lululemon Athletica. TD Cowen lowered the price target to $220 from $298, Needham to $192 from $238, and BTIG Research to $303 from $375, while all maintaining a Buy rating. Additionally, Truist Financial analyst Joseph Civello also maintained a Buy rating on Lululemon Athletica. William Blair & Co downgraded the stock, while other firms maintained various ratings including Buy, Equal-Weight, and Neutral. The company's shares closed at $206.09.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

  • Pablo_Chua
    09-08
    Pablo_Chua
    over hyped consumer discretionary goods buy below fair value of $150
  • JIANG_LIM
    09-06
    JIANG_LIM
    its trading around 12x PE now, way below its 5-yr average of 30+. so by that measure it does look oversold. in my personal view, short-term it can still drift lower if sentiment stays bad. longer-term, if holiday sales or new products click, the stock has room to re-rate higher. I lean toward bullish.
  • Yourstruly
    09-07
    Yourstruly
    I’ve noticed a lot of users aren’t technically aware, the stock is a buy.
  • Frosty4ever
    09-06
    Frosty4ever
    has it been oversold? lulu has come way off 52 week high of  usd423. 
  • okalla
    09-07
    okalla
    Great article, would you like to share it?
Leave a comment
5
183