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Lululemon rises after Goldman Sachs rating

Editor: Dhirendra Tripathi

investing. com – Lululemon (NASDAQ: LULU) was up 0.5% on Wednesday. Goldman Sachs (NYSE: GS) rated the yoga apparel maker as a ‘conviction buy’ with an objective of $447.

Analyst Brooke Roach’s target for the stock is 20% above Tuesday’s closing price of $370.77.

Roach believes that the exit from the Covid-19 quarantines is supportive for clothing and brands, and the company is using the opportunity to consolidate its leadership in the digital channel.

According to reports, Roach sees the company as “a leader in transitioning from online to offline consumer contact with a meaningful opportunity to continue to consolidate consumer awareness in the marketplace.” He also said that the company has many growth opportunities and the share has an attractive risk-return stability.

For the ongoing second quarter, the company expects net income to be in the $1.30-1.33 billion range. It sees adjusted diluted earnings per share (EPS) in the middle of $1.10-1.15.

Provided guidance on the adjusted diluted EPS side of $6.73-6.86 on revenue of $5.82-5.90 billion for fiscal year 2021.

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