Lululemon impresses analysts with financial targets, Power of Three strategy
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Lululemon Athletica (NASDAQ:LULU) is being viewed favorably on Wall Street after laying out financial targets and its Power of Three strategy at an investor event on Wednesday.
BTIG reiterated a Buy rating on Lululemon Athletica (LULU) and price target of $491.
"These targets are impressive by any measure, particularly given that the company is planning to double its business again vs. three years ago but on a much larger sales base. What's more, we believe that these targets could prove conservative by time and should at minimum support a P/E multiple of 36x-40x based on its EPS growth rate (2x PEG) that likely will average at ~20%," noted analyst Camilo Lyon.
Morgan Stanley hiked its price target on LULU to $339 after taking in the event.
LULU's long-term revenue targets were said to have met investors' high bar, appear achievable, and were seen as appropriately balanced by channel, category, and geography. The soon-to-be-launched guest loyalty program is also expected to drive higher existing customer engagement, while the footwear launch is noted to have exceeded expectations even if it is still in the early stages.
Stifel called the confident outlook from Lululemon (LULU) encouraging and said the five-year targets were ahead of its own expectations.
Shares of Lululemon (LULU) rose 0.80% premarket on Thursday after falling off 4.76% on Wednesday.
Check out the details on Lululemon's (LULU) long-term financial targets.