Lululemon Athletica Faces Stock Price Challenges, but Analyst Sees Upside Potential

Baird's Mark Altschwager lowered their price target on Lululemon Athletica (NASDAQ: LULU) by 9% from $555 to $505 on 2024/04/19. The analyst maintained their Buy rating on the stock.

Altschwager recently met with Lululemon Athletica management and noted that while the stock price has faced challenges this year, management's tone was constructive. They pointed to controllable levers that could drive improved performance in the second quarter of 2024. Altschwager also highlighted that the current pullback in valuation represents an attractive buying opportunity for investors.

According to WallStreetZen, 73.3% of top-rated analysts currently rate LULU as a Strong Buy or Buy, while 26.7% see it as a Hold. There are no analysts recommending or strongly recommending selling the stock.

Looking at the consensus forecast among analysts, LULU is expected to deliver earnings per share (EPS) of $13.14 in the upcoming year. If these predictions hold true, Lululemon Athletica's next yearly EPS will see a 7.5% increase on a year-over-year basis.

However, it's worth noting that LULU's stock price has experienced a decline since its last quarterly report on January 28, 2024. The stock is currently down 26.3% since then and down 4.8% on a year-over-year basis. During this period, LULU has been trailing behind the broader market, with the S&P 500 down 19.6%.

Mark Altschwager, the Baird analyst who provided the recent rating, is ranked in the top 14% of Wall Street analysts by WallStreetZen. With an average return of 6.6% and a 50% win rate, Altschwager specializes in the Healthcare, Technology, and Consumer Cyclical sectors.

Lululemon Athletica Inc. is a company that designs, distributes, and retails athletic apparel and accessories for both women and men. The company operates in two segments, Company-Operated Stores and Direct to Consumer, offering a wide range of products for various athletic activities, such as yoga, running, and training. In addition to apparel, Lululemon also provides fitness-related accessories and footwear. The company sells its products through various channels, including company-operated stores, outlets, online platforms, wholesale accounts, and licensing arrangements. As of January 30, 2022, Lululemon operated 574 company-operated stores globally.

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