Morgan Stanley analyst Alexandra Straton maintained a Buy rating on Lululemon Athletica (LULU – Research Report) today and set a price target of $411.00.
Alexandra Straton’s rating is based on a combination of factors that suggest potential growth for Lululemon Athletica. Despite some uncertainties in the US consumer market and the company’s newness-driven growth strategy, there is room for upside in the company’s earnings per share (EPS) for the fourth quarter of 2024. This potential for EPS growth, coupled with the current market positioning, supports a Buy rating.
Moreover, the market’s expectations have been reset, which aligns with a more conservative outlook from management. This adjustment in expectations, along with the possibility of downside protection and potential upside in the near-term earnings, contributes to the positive outlook. Straton also notes that while sales guidance might be slightly below Street estimates, the company’s EPS could prove to be more resilient, further justifying the Buy recommendation.
According to TipRanks, Straton is a 4-star analyst with an average return of 4.4% and a 52.80% success rate. Straton covers the Consumer Cyclical sector, focusing on stocks such as On Holding AG, TJX Companies, and Victoria’s Secret.
In another report released yesterday, BTIG also maintained a Buy rating on the stock with a $470.00 price target.
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