Several analysts raised the price target of Lululemon Athletica Inc (NASDAQ: LULU) following its reported third-quarter (Q3) earnings beat and announced a $1 billion buyback.
Yesterday, the Vancouver-based company reported a revenue increase of 19% Y/Y to $2.2 billion, which beat the consensus estimate of $2.19 billion and quarterly adjusted earnings of $2.53 per share, which beat analyst estimates of $2.28 per share.
LULU sees fourth-quarter revenue in the range of $3.135 billion to $3.17 billion, versus estimates of $3.18 billion. The company anticipates full-year 2023 revenue of $9.549 billion to $9.584 billion. Full year earnings are expected to be between $12.34 and $12.42 per share. The board also authorized an additional $1 billion buyback.
Needham analyst Anna Andreeva raised the price target to $525 from $470 and maintained the Buy rating.
Telsey Advisory Group analyst Dana Telsey increased the price target to $520 from $450 and reiterated an Outperform rating.
Goldman Sachs analyst Brooke Roach increased the price target to $513 from $464 at a Buy rating.
Morgan Stanley analyst Alex Straton lifted the price target to $493 from $437 and maintained an Overweight rating.
Apart from this, at an Overweight rating, Barclays upped the price target to $530 from $480, JPMorgan to $500 from $489, and Keybanc to $500 from $450.
UBS boosted the price target to $470 from $429 and kept the Neutral rating, and Bernstein lifted it to $400 from $366 while reaffirming a Market Perform rating.
Needham: Andreeva increased revenue and EPS estimates to $9.581 billion (from $9.569 billion) and $12.42 (from $12.06) for FY23 and $10.943 billion (from $10.938 billion) and $14.02 (from $13.90) for FY24.
Also, Andreeva sees FCF to more than triple this year (over $1B) and share buyback (new $1B share buyback).
Sales growth expectations hover at around 14%, with bigger outerwear investment appearing to be working and easy gross margin comparables.
Telsey: Telsey remains encouraged that LULU continues to deliver strong results while investing in future growth opportunities, and expects continued momentum in the business despite a challenging and uncertain operating environment.
The analyst raised the EPS outlook to $12.42 from $12.15 for FY23 and $14.25 from $14.00 for FY24.
The analyst…
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