Lululemon Athletica Inc (NASDAQ: LULU) has gained more than 50% over the past eight months and now a Wells Fargo analyst says it’s as far as the stock goes for now.
Lululemon stock has had its runOn Monday, Ike Boruchow downgraded the athletic apparel company to “equal weight”. His $445 price objective is roughly in line with where its shares are trading currently.
The analyst continues to see the Nasdaq-listed firm as an industry leader but removed his buy rating from Lululemon stock only because it’s no longer trading at an attractive valuation.
The main question we have following 24 months of well above plan growth is can LULU sustain their algorithm into 2024 and beyond.
Lululemon Athletica Inc is scheduled to report its financial results for the third quarter on December 7th.
Citigroup Boosts Lululemon Athletica $LULU Price Target to $520.00 https://t.co/4tNbO04mSX
— US Banking News (@AmericanBanking) December 3, 2023Nike is a better pick than LululemonIke Boruchow remains impressed of the strength that Lululemon is seeing in “international” as well as direct-to-consumer.
But positive contributors including the launch of new categories and store expansion are already fully priced in, he added in a research note on Monday that tagged Nike Inc as a better pick than Lululemon stock in terms of the overall risk-reward profile.
Watch here: https://www.youtube.com/embed/QFsn3QwYukM?feature=oembedConsensus is for the Canadian-American multinational retailer to have earned $2.27 a share in its fiscal Q3 versus $2.0 per share in the same quarter last year.
Earlier this year, Lululemon Athletica named Peloton Interactive its exclusive provider of digital content as Invezz reported here.
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