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Lululemon Stock Is Up 75% This Year: What’s Next?

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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.

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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.

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