Bernstein lowered the firm’s price target on Lululemon (LULU) to $220 from $350 and keeps an Outperform rating on the shares. The firm says Lululemon’s Q2 print showed a double whammy of continued U.S. slowdown plus a potential deceleration in the China business, making the near-term view even more challenged as management tries to fix the struggling U.S. business with newness, while injecting more marketing spend into China. Bernstein models about 11% earnings growth on a MT basis, increasingly driven by International sales growth, which should warrant a multiple of mid-teens on next year’s earnings. The firm remains positive on the brand’s ability to grow globally.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
Published first on TheFly – the ultimate source for real-time, market-moving breaking financial news. Try Now>>
Read More on LULU:
- Lululemon price target lowered to $160 from $205 at Wells Fargo
- Lululemon price target lowered to $191 from $224 at JPMorgan
- Lululemon’s Hold Rating: Navigating Challenges and Uncertainties Amidst Competitive Pressures and Margin Concerns
- Oppenheimer downgrades Lululemon following softer Q2 results, lower guidance
- Lululemon downgraded to Neutral at BofA with U.S. recovery pushed out