Lululemon pushes Bernstein off its bearish stance with strong quarter
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Bernstein turned constructive on Lululemon Athletica (NASDAQ:LULU
+0.2%) with an upgrade to Market Perform from Underperform with valuation said to be looking more attractive.
The firm said a lot has changed in two months with the lofty multiples on growthy names now gone. "The stock is down ~22% YTD despite positive EPS revisions, as the multiple has de-rated disproportionately vs. the market," noted the Bernstein analyst team.
Wall Street in general has been buzzing on LULU after the company's earnings reported impressed. Morgan Stanley noted Lululemon Athletica (LULU) was one of the few softlines retailers to raise full-year guidance despite the macro and supply chain volatility. The firm backed its Overweight rating on LULU and said it reaffirmed its position as one of the best growth assets in the space.
LULU still trades below its 50-day, 100-day, and 200-day moving averages even after last week's rally.