Lululemon price target raised to $387 from $343 at Morgan Stanley

Morgan Stanley analyst Alex Straton raised the firm’s price target on Lululemon to $387 from $343 and keeps an Overweight rating on the shares. EPS in Q3 came in about 1% ahead of Street expectations and above the high-end of guidance, making for Lululemon’s tenth consecutive quarter surpassing consensus estimates, noted Straton, who thinks after-hours stock pressure can be attributed to the stock’s recent run and high pre-print expectations. However, strong quarter-to-date commentary "stands out to us," said Straton, who thinks the company’s Q4 guidance "leaves room" for another raise.