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Thursday, March 28, 2024

UPDATE: Macquarie Downgrades Lululemon Athletica

Courtesy of Benzinga.

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Macquarie downgraded Lululemon Athletica inc. (NASDAQ: LULU) in a report issued Wednesday from Neutral to Underperform and reduced the price target from $40 to $34.

Analysts led by Laurent Vasilescu and Stephanie Wakeham noted "that the company needs to meaningfully ramp up international, R&D and marketing investments in order to compete on a global scale."

Vasilesu believed that the company "lost ~$40 million when it entered the U.S. Now it is expanding to Asia and Europe. Assuming incremental SG&A of $28 million, we model LULU’s overseas plans could impact consensus FY 2015 EPS by $0.13."

The report concluded that a "FY 2015E EPS multiple of 19x is in line with the sportswear median multiple. We set FY 2015-16E EPS at $1.75 and $1.77, and roll forward estimates to include FY 2017 and FY 2018."

Lululemon Athletica recently traded at $39.76, up 0.40 percent.

Latest Ratings for LULU

Date Firm Action From To
Oct 2014 Macquarie Downgrades Neutral Underperform
Sep 2014 Citigroup Maintains Neutral
Sep 2014 Deutsche Bank Maintains Hold

View More Analyst Ratings for LULU
View the Latest Analyst Ratings

Posted-In: Laurent Vasilescu MacquarieAnalyst Color Downgrades Price Target Analyst Ratings

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