Lululemon Downgraded to “Neutral” at Credit Suisse (LULU)

Lululemon (NASDAQ: LULU) was downgraded by Credit Suisse to a “neutral” rating in a research note issued on Tuesday. They currently have a $75.00 price target on the stock, down from their previous price target of $79.00.

The analysts wrote, “Lululemon’s results showed signs that underlying demand for the brand remains robust, with comps better than guidance (10% versus guidance for HSD) and eCommerce sales up 48% Y/Y adjusting for the extra week (56% reported). Soft Canada business trends, however, suggest that our thesis of moderating productivity gains in mature markets is playing out, limiting upside revenue potential. We also caution that the consumer-facing response to the product recall falls short of what we would consider an appropriate level, adding risk of a longer-term consumer backlash.”

A number of other analysts have also recently weighed in on LULU. Analysts at Stifel Nicolaus cut their price target on shares of Lululemon from $83.00 to $75.00 in a research note to investors on Tuesday. They now have a “buy” rating on the stock. Separately, analysts at Sterne Agee downgraded shares of Lululemon from a “buy” rating to a “neutral” rating in a research note to investors on Tuesday. Finally, analysts at Janney Montgomery Scott cut their price target on shares of Lululemon from $80.00 to $71.00 in a research note to investors on Tuesday. They now have a “buy” rating on the stock.

Four research analysts have rated the stock with a sell rating, four have assigned a hold rating, thirteen have given a buy rating and one has given a strong buy rating to the company’s stock. Lululemon currently has a consensus rating of “Buy” and an average target price of $77.18.

Lululemon (NASDAQ: LULU) traded down 4.05% on Tuesday, hitting $62.08. Lululemon has a 1-year low of $52.20 and a 1-year high of $81.09. The stock’s 50-day moving average is currently $67.61. The company has a market cap of $8.949 billion and a price-to-earnings ratio of 39.94.

Lululemon (NASDAQ: LULU) last issued its quarterly earnings data on Thursday, March 21st. The company reported $0.75 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.74 by $0.01. The company had revenue of $485.50 million for the quarter, compared to the consensus estimate of $482.59 million. During the same quarter in the prior year, the company posted $0.51 earnings per share. The company’s quarterly revenue was up 30.7% on a year-over-year basis. Lululemon has set its Q1 guidance at $0.28-0.30 EPS and its FY14 guidance at $1.95-1.99 EPS. On average, analysts predict that Lululemon will post $2.12 earnings per share for the current fiscal year.

Manufactures, distributes and sells technical athletics and yoga apparel. The Company works in cooperation with various athletes to create designs specific to meet their needs.

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