Why This Lululemon Athletica Analyst Raises Forecast After Meeting With Management
Portfolio Pulse from Priya Nigam
Raymond James analyst Rick Patel has maintained an Outperform rating for Lululemon Athletica Inc (NASDAQ:LULU) and raised the price target from $495 to $520 after a meeting with the company's management. The company's Q4 revenue growth guidance was increased to +14-15% due to better-than-expected demand. Gross margin expansion is also expected to be higher than previously projected, with controlled inventories and continued attractiveness in the China market. LULU shares saw a slight decline of 0.30% to $484.23.
January 10, 2024 | 5:28 pm
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Lululemon Athletica's price target has been raised from $495 to $520 by Raymond James analyst Rick Patel, reflecting positive Q4 revenue growth and expected gross margin expansion.
The increase in Lululemon's price target by a reputable analyst based on positive financial guidance suggests a bullish outlook for the stock. The expected revenue growth and margin expansion indicate strong company performance, which is likely to be viewed positively by investors. The slight share price decline at the time of publication may be a temporary reaction, and the analyst's positive forecast could contribute to a short-term uptick in the stock price.
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