In a report released today, Alexandra Straton from Morgan Stanley maintained a Buy rating on Lululemon Athletica (LULU – Research Report), with a price target of $420.00.
Alexandra Straton’s rating is based on several factors influencing Lululemon Athletica’s stock performance. One of the primary reasons for the Buy rating is the market’s growing confidence in the company’s management to deliver new and innovative products, which is expected to drive revenue growth in North America in the first half of 2025. Despite the recent 35% increase in the stock over the last six months, Straton notes that the correlation between new product introductions and sales growth in North America is not statistically significant, suggesting other factors are at play.
Furthermore, Straton highlights the importance of the company’s new product lines, such as Glow Up and BeCalm, which have been positively received by the market. The analyst suggests that while newness is a contributing factor, the company’s ability to meet high expectations and deliver strong financial guidance will be crucial for further stock appreciation. Straton plans to closely monitor key performance indicators, such as new SKU penetration and sales per customer, to reassess the company’s performance and potential future stock movements.
According to TipRanks, Straton is a 4-star analyst with an average return of 5.8% and a 61.04% success rate. Straton covers the Consumer Cyclical sector, focusing on stocks such as On Holding AG, Victoria’s Secret, and Tapestry.
In another report released on February 14, Stifel Nicolaus also reiterated a Buy rating on the stock with a $438.00 price target.