Citi expects Lululemon stock to pop post earnings
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Lululemon Athletica (NASDAQ:LULU) should leap higher on Tuesday when it posts Q4 earnings results, according to Citi analyst Paul Lejuez.
While he expects earnings to come in-line with the companyâs prior forecasts, guidance is likely to exceed pessimistic expectations. Additionally, growth in China could promote optimism on the prospects for the company.
âWith investors anticipating conservative F23 guidance and shares trading at 16.5x F23 EV/EBITDA (well below NKE at 25x), we believe the setup into the print is favorable,â Lejuez told clients. âWe are opening a 30-day positive catalyst watch.â
He maintained an Outperform rating and a $350 price target on the stock ahead of the announcement. Shares of Lululemon (LULU) have fallen about 5% year to date.
Dig into sell-side ratings on the stock.