Lululemon Athletica stock is touching new highs
Lululemon Athletica (LULU) is currently sitting around its all-time high price. The company touched a high of $140.42 on August 27. It has gained around 76% so far this year as of August 28 and is clearly among the top-performing apparel stocks.
While other apparel stocks have also had a great run this year, Lululemon has outperformed by wide margins. For comparison, sportswear stocks Under Armour (UAA), Nike (NKE), and Columbia Sportswear (COLM) have risen 45%, 32%, and 26%, respectively, while branded apparel stocks VF (VFC) and Ralph Lauren (RL) have soared 26% and 31% so far this year.
What’s the upside now?
Is there any upside left to Lululemon stock? Let’s see what Wall Street thinks. Lululemon, which is covered by 34 analysts, has an average target price of $128.89, reflecting a downside of around 7%. Individual price targets on the company range between $57 and $161.
Several analysts recently raised their price target on LULU, showing confidence in the company ahead of its 2Q earnings report on August 30.
JPMorgan raised Lululemon’s price target from $133 to $146, noting the company’s growing brand strength in North America and Asia. JPMorgan also expects Lululemon to raise full-year guidance along with 2Q results.
In addition, Buckingham Research lifted LULU’s price target to $130 from $110, while Credit Suisse also raised its price target from $125 to $154. Credit Suisse analyst Michael Binetti believes that the athleisure stock’s price should rise further driven by the strong lineup of new products. Its same-store sales should get a boost from ongoing product momentum and digital improvements, and the company should surpass 2Q top-line expectations.