Lululemon Athletica Inc Stock Forecast:
According to 22 analysts, the average target price for Lululemon Athletica Inc over the next 12 months is USD 397.02, and the average analyst rating is Strong Buy. Stock Target Advisor’s analysis is Slightly Bullish based on 9 positive signals and 4 negative signals. The current stock price as of the last closing was USD 317.22, which is up 8.10% over the past week and 2.23% over the past month, but down 1.22% over the last year.
Analysts Coverage Change:
Barclays maintains an Overweight rating on Lululemon Athletica Inc., and lowers the price target to $368 from $394 on the company’s stock.
Positive Fundamentals:
Lululemon Athletica is a company that meets the criteria of a large, stable entity in its sector. It has shown superior risk-adjusted returns and low volatility, indicating that it has been a consistent performer compared to its peers, with potential for higher returns. The management of the company has delivered superior returns on equity, invested capital, and assets compared to its peers, placing it in the top quartile. The company also had positive cash flow and free cash flow in the most recent four quarters, indicating that it has a strong financial position. Lastly, Lululemon Athletica has shown top quartile revenue growth in the previous 5 years compared to its sector, which is a positive sign for potential investors.
Negative Fundamentals:
Lululemon Athletica’s stock is considered overpriced compared to its peers on several financial metrics, including price to earnings, book value, cash flow, and free cash flow. The company’s stock is priced above the median for its sector on each of these metrics, indicating that investors may be paying a premium for Lululemon’s shares. As such, potential buyers of Lululemon’s stock should proceed with caution and carefully evaluate whether the company’s current valuation is justified given its financial performance and growth prospects.
FA Score (Fundamental Analysis):
The fundamental analysis of Lululemon Athletica is “Slightly Bullish” with a FA score of 6.9 out of 10, where 0 is very bearish and 10 is very bullish.
