'Stand-Out Is An Understatement,' Morgan Stanley Comments On Lululemon Athletica's Q2 Performance
Morgan Stanley analyst Alex Straton reiterated an Overweight rating on the shares of Lululemon Athletica Inc (NASDAQ: LULU) and raised the price target to $343 from $315.
The company's Q2 earnings and Q3 guidance both were above Street expectations.
Straton said the company's performance demonstrates its ability to outperform in a challenging environment.
She noted that raised FY guidance stood out in a sea of Softlines Retail cuts and even embedded 2H22 performance deceleration.
Straton added that the stock could see more growth, having bounced more than 10%, reversing nearly all of its declines since mid-August.
She cited that Lululemon's inventory is the only thing to pick at, but she isn't raising alarm bells.
Price Action: LULU shares are trading higher by 7.95% at $317.86 on the last check Friday.
Latest Ratings for LULU
Date | Firm | Action | From | To |
|---|---|---|---|---|
Jan 2022 | Barclays | Maintains | Overweight | |
Jan 2022 | Morgan Stanley | Maintains | Equal-Weight | |
Jan 2022 | Telsey Advisory Group | Maintains | Outperform |
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