Sterne Agee CRT Cuts Price Target on Lululemon Athletica (LULU) Headed into 3Q

Sterne Agee CRT Buy Lululemon Athletica Inc. (NASDAQ: LULU) price target of $68.00 (from $77.00) into the company's 3Q. Results from the 3Q so far have been robust, with SSS of +11%, Which suggests that the brand is hot.

Analyst Sam Poser commented, "SSS of +11% (FX-neutral) is strong indication that the brand is hot. Results thus far in 3Q15 remain robust. However, the GM decline was above expectations due to one-time items such as the writedown of fabric and expenses related to a slowdown of the West Coast ports. The core business is strong and sell-throughs are healthy. While LULU will not see peak margin levels of 2011/2012 any time soon, annual EPS growth of HDD is not too shabby, and certainly warrants and mid-20's P/E multiple."

For an analyst ratings summary and ratings history on Lululemon Athletica Inc. click here. For more ratings news on Lululemon Athletica Inc. click here.

Shares of Lululemon Athletica Inc. closed at $53.54 yesterday.

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