NEW YORK, NY / ACCESSWIRE / October 23, 2017 / Lululemon shares saw a nice 5% climb at the close on Friday after Citi analysts upped their price target and rating on the stock and reassured investors that Amazon fears were "overblown." Shares of Skechers were on fire, having their best trading day in almost twenty years after a very strong third-quarter report.
RDI Initiates Coverage on:
Lululemon Athletica Inc.
Skechers U.S.A., Inc.
Lululemon Athletica Inc. shares closed up 5.33% with nearly 3.5 million shares traded after analysts at Citi upgraded the stock from "neutral" to "buy." The firm also upped its price target from $62 to $73. Citi explained that meetings with Lululemon's management, "gave us more confidence in both the near and long-term trajectory of the brand and its growth potential." According to Citi, fears about Amazon have been "overblown." There were ten main reasons why Citi feels the way it does about the stock which included the company's positive first and second quarter result, Chinese sales growing, and growth opportunities in outerwear clothing. The firm has said that current levels are an "attractive entry point for one of the best performing brands."
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Skechers U.S.A., Inc. skyrocketed on Friday, closing the day up 41.45%. Shares hit a brand new high of $34.33 during intra-day trading with a little over 35 million shares traded. The gains on Friday were the biggest one-day gains the stock has ever seen since it debuted in the market in 1999. It was a day of celebration after the athletic shoe company released its third-quarter earnings that beat the Street. The results were so good that analysts started upping their price targets. For the quarter Skechers reported net earnings of $92.3 million, or 59 cents a share. Analysts had been expecting 43 cents. Revenue was $1.095 billion compared to $1.068 billion expected by the Street. Susquehanna analyst Sam Poser commented, "SKX's results are evidence that SKX is not the one-trick pony it once was." Susquehanna upped its price target from $34 to $38. Wedbush analyst Christopher Svezia wrote, "While we felt there was opportunity developing in the story looking to FY18, key drivers inflected sooner than we expected, particularly around international growth and gross margin, which were the largest contributors to the upside and our revised estimates." The firm upped its price target from $25 to $35.
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