Is LULU Stock a Buy After Earnings? 3 Analysts Weigh In on Lululemon Prices.

Lululemon (NASDAQ:LULU) stock is advancing 7% in morning trading after the apparel maker reported fourth-quarter net income that came in slightly above analysts’ estimates.

the lululemon (LULU) logo on a mosaic-style wall
Source: Richard Frazier /

In the wake of the company’s Q4 results, which also featured a 32% year-over-year surge in same-store sales and better-than-expected 2022 revenue guidance, a number of analysts were fairly bullish.

So, what else do you need to know?

Is It Time to Buy LULU Stock?

According to Bank of America, the apparel maker had “accelerating momentum into” the current quarter, while its prognosis is “favorable.” Adding that the company appears to have “gained share during the pandemic and is well positioned for growth,” the firm reiterated a “buy” rating and a $450 price target. Additionally, Bank of America noted that Lululemon expects its revenue to climb 20%-22% in fiscal 2022.

For its part, BTIG stated that Lululemon “posted another solid quarter despite persistent macro/Omicron/transit” challenges. The apparel maker announced a $1 billion share buyback plan, and the company can raise its market share and profits, “particularly in Asia,” the firm stated. Praising what it sees as a “remarkable consistency of execution,” BTIG increased its price target on LULU stock to $491 and kept a “buy” on the name.

Less upbeat was Citi analyst Paul Lejuez. He was also pleased with Lululemon’s 2022 sales guidance, but he thinks that “the company is using air freight to secure inventory, which will weigh on [its] gross margin near term,” The Fly reported. Lejuez increased his price outlook on the shares to $400 from $350, but kept a “neutral” rating on LULU stock.

According to TipRanks, of the 21 analysts covering the shares, 14 have “buy” ratings, six have “hold” ratings, and one has a “sell” rating on them. Their average price target on LULU stock is $421.58, implying 13% upside.

On the date of publication, Larry Ramer did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the Publishing Guidelines.

Article printed from InvestorPlace Media,

©2024 InvestorPlace Media, LLC