Lululemon price target raised to $450 from $445 at Piper Sandler

Piper Sandler analyst Abbie Zvejnieks raised the firm’s price target on Lululemon to $450 from $445 and keeps an Overweight rating on the shares. The analyst increased estimates based on an analysis of the company’s revenue opportunity in China. The firm says approximately two-thirds of the company’s current store base in China was opened since the start of the COVID-19 pandemic. It estimates that store productivity in the region will improve by 35% in fiscal 2023 which, in addition to new store openings, should almost double Lululemon-owned store revenue in the region this year. With an almost fully direct-to-consumer business, Lululemon is also better positioned than peers in North America in the near-term as the domestic wholesale environment continues to be challenging, the analyst tells investors in a research note.