For all who are strictly long looks like Barclays has bailed you out temporarily raising the price target from $54 to $58. If you don't get a rise out of this today its back down to $52.50 and you have the rest of my comments on this stock's movement sub $52.50.
Credit Suisse said that the upside is 'capped' due to slowdowns in canada and the loonie.
Either way, a valuation model that assumes that 25% growth each year in a fad clothing item should demand a 50 PE is nuts.
The talking heads on CNBC kill me. Everyone trying to pitch this market at cheap and encourage pension funds to put their capital at risk right now. NFW. Let that folks that inflated these balloons hold them when they pop.
No one should be putting their money into a former MOMO stock. There are plenty of great companies at historically cheap valuations (large cap tech in particular) that are good investments. There are plenty of dividend paying stocks trading at reasonable multiples. But these balloons? Nope. They have to pop...
I shorted some in the 54.30's I will cover soon, its to slow a trade for me today. I also shorted PNRA today and am up $1 but I may cover there soon as well.With retail sales coming tomorrow why step infront of a potential bus. By the way i wonder if this upgrade threw a curveball at the MM, I was faily comfortable with LULU dropping below 53 today. Ofcourse in this market the day is young in the soap opera of Italien bond yields.
As far as I know, MM will peg this stock at $55 by opt ex week. I would love to see LULU base at $55 for another month just to see those DITM puts get slaughtered.
Oh, I love it even more if LULU rockets to $70 by year end too! :)
I guess Barclays is upgrading because its a lousy company and no one is buying its products because the prices are too high. WAKE UP, SHORTY!!!! This is a solid investment, if not trade, and the sky might be the limit.
Maybe Barclays is upgrading so they can dump their shares in order to raise capital to cover their Euro debt exposure...nah, they are just looking out for YOUR best interest.
The insitutions are selling to the little guys now in the face of a liquidity crunch (the Eurozone is destroying capital at an incredible pace).
Unless you think you can eat women's yoga apparel (last time I checked cellulose wasn't the most digestible compound known to man), it won't be worth anything going forward.