Aneesha Sherman, an analyst from Bernstein, maintained the Buy rating on Lululemon Athletica (LULU – Research Report). The associated price target was lowered to $405.00.
Aneesha Sherman’s rating is based on a combination of factors including Lululemon’s position as a market leader in North American sports apparel, which makes it susceptible to macroeconomic challenges affecting consumer traffic. Despite these challenges, the company is seeing improvements in average order value and basket size due to new product assortments.
Additionally, Lululemon’s strong international growth, particularly in China, where it benefits from low market share and premium positioning, contributes positively to its outlook. While macroeconomic uncertainties have led to a reduction in earnings estimates and valuation multiples, there is potential upside depending on future US consumer sentiment. As a result, Sherman maintains a Buy rating, albeit with a reduced price target.
In another report released today, Bank of America Securities also reiterated a Buy rating on the stock with a $400.00 price target.
Based on the recent corporate insider activity of 33 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of LULU in relation to earlier this year.