Lululemon Athletica Inc (LULU:NSD) Analysts rate as a Buy, $380 target

STA Research
by: STA Research
lululemon stock

Lululemon Athletica Inc Stock Analysis:

Based on the Lululemon Athletica Inc stock forecasts from 26 analysts, the average analyst target price for Lululemon Athletica Inc is USD 380.47 over the next 12 months. Lululemon Athletica Inc’s average analyst rating is Buy .

Stock Target Advisor’s own stock analysis of Lululemon Athletica Inc is Slightly Bullish , which is based on 8 positive signals and 4 negative signals. At the last closing, Lululemon Athletica Inc’s stock price was USD 299.96Lululemon Athletica Inc’s stock price has changed by -5.63% over the past week, -3.40% over the past month and -25.04% over the last year.

Lululemon Athletica Inc. has stock forecasts from 33 Crowd Ratings, the average Crowd target price for Lululemon Athletica Inc is USD 397.50 over the next 12 months. Lululemon Athletica Inc’s average analyst rating is Buy.

 

About Lululemon Athletica Inc (LULU:NSD)

lululemon athletica inc., together with its subsidiaries, designs, distributes, and retails athletic apparel and accessories for women and men. It operates in two segments, Company-Operated Stores and Direct to Consumer.

The company offers pants, shorts, tops, and jackets for healthy lifestyle and athletic activities, such as yoga, running, and training, as well as other sweaty pursuits.

It also provides fitness-related accessories and footwear. The company sells its products through a chain of company-operated stores; outlets and warehouse sales; interactive workout platform; a network of wholesale accounts, such as yoga studios, health clubs, and fitness centers; temporary locations; and license and supply arrangements, as well as directly to consumer through mobile apps and lululemon.com e-commerce website.

As of January 30, 2022, it operated 574 company-operated stores under the lululemon brand in the United States, Canada, the People’s Republic of China, Australia, the United Kingdom, Japan, New Zealand, Germany, South Korea, Singapore, France, Malaysia, Sweden, Ireland, the Netherlands, Norway, and Switzerland. lululemon athletica inc. was founded in 1998 and is based in Vancouver, Canada.

 

Most Recent Analyst Ratings for Lululemon Athletica:

 

 

What we like:

High market capitalization

This is one of the largest entities in its sector and is among the top quartile. Such companies tend to be more stable.

Superior risk adjusted returns

This stock has performed well, on a risk adjusted basis, compared to its sector peers(for a hold period of at least 12 months) and is in the top quartile.

Low volatility

The stock’s annual returns have been stable and consistent compared to its sector peers(for a hold period of at least 12 months) and is in the top quartile. Although stability is good, also keep in mind it can limit returns.

Superior return on equity

The company management has delivered better return on equity in the most recent 4 quarters than its peers, placing it in the top quartile.

Superior return on assets

The company management has delivered better return on assets in the most recent 4 quarters than its peers, placing it in the top quartile.

Positive cash flow

The company had positive total cash flow in the most recent four quarters.

Positive free cash flow

The company had positive total free cash flow in the most recent four quarters.

Superior Revenue Growth

This stock has shown top quartile revenue growth in the previous 5 years compared to its sector.

 

What we don’t like:

Overpriced compared to earnings

The stock is trading high compared to its peers on a price to earning basis and is above the sector median.

Overpriced compared to book value

The stock is trading high compared to its peers median on a price to book value basis.

Overpriced on cashflow basis

The stock is trading high compared to its peers on a price to cash flow basis. It is priced above the median for its sectors. Proceed with caution if you are considering to buy.

Overpriced on free cash flow basis

The stock is trading high compared to its peers on a price to free cash flow basis. It is priced above the median for its sectors. Proceed with caution if you are considering to buy.

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