Lululemon Athletica Inc (NASDAQ:LULU) has been in focus after grabbing the attention of U.S. shoppers during the holiday season. Although the company’s growth could slow, it remained “one of the most attractive growth stories among global brands,” given the potential to scale the International and Men’s segments with margin expansion, according to Raymond James. The Lululemon Athletica Analyst: Rick Patel maintained an Outperform rating for Lululemon Athletica while raising the price target from $495 to $520. The Lululemon Athletica Group Thesis: The meeting with the company revealed revenue growth guidance for the fourth quarter was raised from +13-15% to +14-15% to reflect better-than-expected demand, Patel said in the note. Lululemon Athletica expects its gross margins to expand by 120 to 130 basis points, versus its earlier projection of 90 to 120 basis points, due to better-than-expected sales growth, modestly higher-than-expected air freight benefit and lower-than-planned markdowns, the analyst stated. The company’s competitive promotions […]

Lululemon is benefiting from strong demand levels for its categories, even though outerwear was “good but not great,” Raymond James’ Rick Patel says after meeting with Lululemon’s VP of investor relations, Howard Tubin, at the annual ICR conference in Orlando, Florida. Lululemon raised its 4Q EPS and revenue guidance earlier this week. “While we expect growth to slow versus recent years, we still consider Lululemon one of the most attractive growth stories among global brands with an opportunity to scale International and men’s with high margins that can increase further,” Patel adds. Raymond James raises its 4Q revenue estimates to 15% growth, up from 14% previously, and upgrades its FY24 EPS estimates to $13.98 from $13.90. The firm also raises its target price to $520 from $495.