Wall Street Is Turning Positive on Lululemon

Wall Street’s view on LULU

33 Wall Street analysts cover Lululemon Athletica (LULU). We discussed the recent analyst action on the company after its 3Q17 results in the previous section. In the current section, we’ll focus on overall analyst ratings for the company and compare it with peers.

Ratings

LULU now has a rating of 2.3 as compared to 2.4 before the 3Q17 results. Ratings are on a scale of one (strong buy) to five (strong sell). The company was rated a 2.5 four months ago. Better-than-expected results have paved the way for an improvement in its ratings.

Wall Street Is Turning Positive on Lululemon

Competitors Nike (NKE) and Columbia Sportswear (COLM) have similar ratings. The two companies are rated 2.4 and 2.2, respectively. However, Under Armour (UAA) is rated a 3.3.

Recommendations

LULU is recommended a “buy” by 55% of analysts. Bank of America, Citigroup, and Susquehanna are among the brokers who suggest buying the stock. This figure compares to 46% “buy” ratings for Nike and 50% for Columbia Sportswear.

42% of Wall Street analysts covering the stock including Wells Fargo and Canaccord Genuity analysts recommend holding Lululemon stock. Only 3% of the analysts have a “sell” rating on the company. In comparison, 3%, 0%, and 32% of analysts suggest selling Nike, Colombia Sportswear, and Under Armour.

ETF investors seeking to add exposure to LULU can consider the iShares Morningstar Mid-Cap Growth ETF (JKH), which invests 0.4% of its portfolio in LULU.

Read the next section to know about Lululemon’s stock market performance.