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Lululemon's free cash flow profile points to $40B market cap: Cowen

On Tuesday, Cowen analyst John Kernan raised his price target on shares of LULU to $250 from $235. Kernan thinks the company is doing all the right things when it comes to e-commerce, in-store product placement and efforts beyond men's and women's businesses (such as Lab, Lululemon's streetwear-like line). He sees LULU's growth, durability and ROIC profile as most similar similar to rival Nike's, and, assuming it can sustain similar FCF multiples to its peers, the market cap could approach $40 billion, or roughly a $330 stock price.