William Blair analyst Sharon Zackfia has reiterated their bullish stance on LULU stock, giving a Buy rating on February 28.
Sharon Zackfia’s rating is based on several positive indicators for Lululemon Athletica’s performance. The company is expected to achieve the high end of its preannounced expectations for the fourth quarter, with a projected revenue growth of 12%. This growth includes a significant increase in brick-and-mortar sales and a modest rise in e-commerce, which is anticipated to account for nearly half of the total sales.
Additionally, Lululemon is expected to see a low-single-digit global constant-dollar comparable sales gain, with improvements in the Americas and strong performance in China Mainland and other regions. Management’s satisfaction with trends across various product categories, including outerwear and bags, further supports the positive outlook. These factors contribute to the confidence in Lululemon’s ability to meet or exceed market expectations, justifying a Buy rating.
In another report released on February 28, Morgan Stanley also maintained a Buy rating on the stock with a $420.00 price target.
Based on the recent corporate insider activity of 36 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.