Q2 STOCKS TO BUY

Analyst Targets 46% Upside for Lululemon Stock After Earnings

A number of analysts are still skeptical of LULU stock

Aug 31, 2018 at 9:27 AM
facebook X logo linkedin


Lululemon Athletica Inc. (NASDAQ:LULU) is signaling another volatile post-earnings move, with the shares trading up 10.8% ahead of the bell -- set to open at a record high. This comes after the yoga apparel maker reported a second-quarter earnings beat of 71 cents per share on stronger-than-expected revenue of $723.5 million, thanks to a 20% rise in same-store sales.

Analysts have been quick to chime in, too, which is likely creating tailwinds for the shares. Among an onslaught of bullish notes, Barclays boosted its price target by $50 to $200 -- a 46% premium to last night's close at $137. Elsewhere, Canaccord Genuity upped its LULU price target to $152 from $137, calling the results "remarkable," but cautioned that, "with the stock already seemingly priced to perfection, any hint of disappointment could lead to a sharp pullback."

This cautious stance is still seen among a number of analysts covering LULU stock, even with the shares boasting a 74.3% year-to-date lead heading into today's trading. In addition to long-term support atop its 60-day and 80-day moving averages, a recent pullback from the equity's Aug. 27 record high at $140.42 was quickly contained by its 10-day trendline. As such, more upbeat analyst attention could keep the wind at Lululemon's back.

This skepticism hasn't been confined to analysts, either, with short sellers starting to target the stock in recent months. Since bottoming at a record low 3.59 million shares in mid-February, short interest on LULU is up 27.2%. The stock's ability to rally to record highs in the face of such intense selling pressure may speak to its underlying strength.

 
 

“Buy This Stock Now!” - Expert Who Called 11x On TSLA

He called a rare 11x on Tesla…

But now, thanks to Elon & Trump’s new alliance…

He says there’s a new opportunity that could be 1,000x BIGGER than Tesla – and it could completely revolutionize a $23 Trillion market.

It’s trading for less than $5 per share right now…

But it won’t be under the radar for long.

Discover The 1,000x Bigger Elon Opportunity Here

GRAND SLAM COUNTDOWN

 
 

Featured Articles from Trusted Partners:

👀Learn How Dividends Create Passive Income for Life
Receive $200 Off Motley Fool Epic. The Motley Fool Epic $299 discounted offer is based on $499/year list price. Introductory promotion for new members only. Take control of your money and your portfolio with Motley Fool Epic.

💵New Income System Could Pay You $4,243 Monthly
You could collect an average of $4,243 per month starting as early as next week with a new payout system for income investors. New registrations are being accepted for investors who want to be in a position to start with their first payout next week.

🚀Easy 92% Crypto Dividends (No Coins Required)
COIN stock doesn't pay a dividend... But there's actually a new way to collect a massive dividend that's indirectly based on the stock and offers a terrific monthly income (currently yielding nearly 92% on a forward basis).

🤝Free Advisor Match with Wiseradvisor.com
Don't leave your retirement to chance! Get matched with a trusted financial expert for FREE and make the most of your tax refund. Get started now.

⚠️Dennis Quaid's #1 Warning for Americans
Here's the thing: life doesn't come with guarantees. The economy shifts, markets stumble, and years of hard work could slip through your fingers like sand. But it doesn't have to be that way for you. So request a free copy of this Gold & Silver Guide that will arrive right to your doorstep when you act now.

 

 
 

Follow us on X, Follow us on Twitter