Analyst Tom Nikic from Needham maintained a Buy rating on Lululemon Athletica (LULU – Research Report) and decreased the price target to $430.00 from $475.00.
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Tom Nikic has given his Buy rating due to a combination of factors that suggest a positive outlook for Lululemon Athletica’s stock. He notes that recent trends have shown improvement, which aligns with the company’s strategy to boost its U.S. business by introducing more seasonal products. This strategy seems to be effective as demand appears to be increasing with the warming weather, indicating that management’s efforts are yielding results.
Furthermore, Nikic believes that if Lululemon can maintain strong sales momentum from the holiday season into the spring, it would be a more accurate reflection of the company’s overall health than any potential slowdown during the less significant retail months of January and February. Despite a slight reduction in the price target to $430 to account for a more conservative valuation, Nikic views the risk/reward scenario positively ahead of the upcoming earnings report.
According to TipRanks, Nikic is a 3-star analyst with an average return of 2.8% and a 42.18% success rate. Nikic covers the Consumer Cyclical sector, focusing on stocks such as Nike, Steven Madden, and Deckers Outdoor.
In another report released today, TD Cowen also maintained a Buy rating on the stock with a $445.00 price target.