Lululemon Stock Stretching Past Sector Struggle

The retailer is a stand-out among its sectors peers today

Deputy Editor
Mar 20, 2020 at 3:18 PM
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Lululemon Athletica Inc (NASDAQ:LULU) is up 9.1% to trade at $168.98 at last check, even as the retail sector struggles amid a slew of store closings in response to the coronavirus. This comes after LULU was upgraded to "buy" from "neutral" by Citi, with the analyst calling the yoga pants retailer a "stand out," commending its balance sheet, and predicting a strong rebound for Lululemon once the worst of the pandemic is over. 

Lululemon has been in sell-off mode with the rest of the broader market since it hit its all-time peak of $266.20 on Feb. 20. While LULU has taken a 36% haircut since then, the equity just toppled recent pressure at the $160 region and is still up roughly 11% year-over-year. 

Sentiment over LULU has been split. Coming into today, 13 analysts considered the stock a "strong buy" while the other 11 say "hold."  Meanwhile, the 12-month consensus target price of $249.57 is still a 49.9% premium to current levels. 

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