TD Cowen analyst John Kernan maintained a Buy rating on Lululemon Athletica (LULU – Research Report) today and set a price target of $445.00.
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John Kernan has given his Buy rating due to a combination of factors that suggest a positive outlook for Lululemon Athletica. Despite a challenging earnings season in the sector, Kernan believes that Lululemon’s management can provide guidance for FY25E that is conservatively set just below the consensus, with his own EPS estimates slightly exceeding the consensus. He maintains a price target of $445, indicating confidence in the stock’s potential upside.
Furthermore, Lululemon’s ability to deliver new and updated product lines, such as the Swiftly and Align franchises, has been positively received, supported by enhanced marketing efforts. Although there are mixed signals in the athleisure market, with some e-commerce traffic data showing declines, the company’s in-store and online promotions remain stable. Kernan also notes the potential for positive same-store sales in the Americas and strong growth in China, which could bolster the company’s performance in the coming fiscal year.
In another report released on March 24, Evercore ISI also maintained a Buy rating on the stock with a $495.00 price target.