Today’s Research Reports on Stocks to Watch: Lululemon Athletica and Yelp Inc.
NEW YORK, NY / ACCESSWIRE / December 8, 2017 / Lululemon shares broke out on Thursday after the company reported strong third quarter results and an analyst at Canaccord Genuity raised his price target and rating on the stock. Shares of Yelp fell into the red after an analyst at Piper Jaffray downgraded the company.
RDI Initiates Coverage on:
Lululemon Athletica Inc.
http://www.rdinvesting.com/report/?ticker=LULU
Yelp Inc.
http://www.rdinvesting.com/report/?ticker=YELP
Lululemon Athletica Inc. shares closed up 6.43% on about 9.1 million shares traded yesterday. The stock reported its fiscal third-quarter earnings after the close on Wednesday and revealed EPS of 56 cents which was 4 cents ahead of the 52 cents that Wall Street had expected. Canaccord Genuity analyst Camilo Lyon raised his rating on the stock from "Sell" to "Hold" and upped his price target from $43 to $70. He wrote, "Moreover, LULU's supply chain-driven gross margin realization story appears to have more chapters to it as evidenced by the 100bps of gross margin expansion in Q3 (vs. flat guidance) and a similar rate of expansion expected in Q4." Shares of Lululemon are up around 11% YTD.
Access RDI's Lululemon Athletica Inc. Research Report at:
http://www.rdinvesting.com/report/?ticker=LULU
Yelp Inc. shares closed down 2.60% on nearly 2.9 million shares traded on Thursday. The stock headed into the red as traders showed concerns about an analyst at Piper Jaffray downgrading the stock and instead praising Facebook and Google. Analyst Sam Kemp of Piper Jaffray wrote, "We believe Yelp's strategic value is declining alongside the relative importance of long-form reviews as consumers increasingly depend on short-form information from social, search and maps for local businesses." According to Kemp, both Facebook and Alphabet's Google have "bolstered their local services recently." He downgraded Yelp from "neutral" to "underweight" and lowered his price target from $38 to $37. He also wrote, "We do not believe browser or app users are highly loyal for Yelp – we believe engagement historically occurred because Yelp was simply the best among poor options. While Yelp's app base, which is highly monetized, continues to grow 20 percent year over year, we believe that competitive efforts from Facebook and Google, in particular, are set to impair traffic growth to Yelp and redirect user attention away from the app."
Access RDI's Yelp Inc. Research Report at:
http://www.rdinvesting.com/report/?ticker=YELP
Our Actionable Research on Lululemon Athletica Inc. (NASDAQ: LULU) and Yelp Inc. (NYSE: YELP) can be downloaded free of charge at Research Driven Investing.
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SOURCE: RDInvesting.com
