Lululemon has 'significant opportunities for growth,' Raymond James says
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Raymond James named Lululemon (NASDAQ:LULU) a âcurrent favoriteâ and reiterated a Strong Buy rating with a $440 price target.
Shares are down 0.8% on Thursday morning.
The yoga pant-maker has 19 Strong Buy ratings, six Buys, six Holds, one Sell and one Strong Sell, according to data compiled by Seeking Alpha.
LULU is âone of the highest quality companies among global brands, with a strong yet still emerging brand with significant opportunities for growth.â
It has one of the highest growth rates among peers as it scales its core business further while also diversifying across geographies, categories and channels.
The company, which also makes shoes, has operating margins among the highest of global brands, and the firm sees room for expansion driven by a strong top line, which should enable EPS growth to outpace revenue.
Recently, HSBC initiated LULU with a Buy rating and a price target of $500, noting that the shares are still barely above late 2020 levels even as the business is significantly bigger and the growth prospects even more exciting than back then.
Seeking Alpha analyst Taylor Irwin this week called the stock a Hold, saying that based on forecasted cash flows, long-term investors should wait for pullbacks in the low $300's before resuming buying.
Shares are up 20% this year. 

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