Lululemon price target raised to $430 from $360 at Telsey Advisory

Telsey Advisory raised the firm’s price target on Lululemon (LULU) to $430 from $360 and keeps an Outperform rating on the shares. The Q3 earnings upside came from strength in sales and gross margin, while the company’s expense leverage was slightly lower than expected, the analyst tells investors in a research note. The firm says Lululemon’s Q4 guidance is in line with consensus at the high end. The “beat and raise” for Q3 improves confidence in the annual outlook, contends Telsey.