Shares of Lululemon Athletica (NASDAQ: LULU) inched up on Friday morning after top-rated Citi analyst Paul Lejuez stated that he expects the athletic apparel retailer to deliver better-than-expected guidance. LULU is expected to announce its Q4 results next week.
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The analyst reiterated a Hold rating with a price target of $350 on the stock, implying an upside potential of 12.8% at current levels. Lejuez expects Q4 earnings to be in-line with expectations and is upbeat about its growth prospects in China.
Lejuez commented, “With investors anticipating conservative F23 guidance and shares trading at 16.5x F23 EV/EBITDA (well below NKE at 25x), we believe the setup into the print is favorable. We are opening a 30-day positive catalyst watch”
Overall, Wall Street analysts rate LULU stock a Moderate Buy based on 17 Buys, two Holds, and three Sells.
