Lululemon Athletica Inc LULU shares jumped in Tuesday’s regular session following positive analyst coverage from Piper Sandler.
What Happened: Piper Sandler analyst Abbie Zvejnieks upgraded Lululemon from Neutral to Overweight and raised the price target from $320 to $350 after seeing demand momentum following a customer survey.
Piper Sandler said its survey showed that Lululemon outpaced Nike Inc NKE in some categories for the first time ever.
“Importantly, LULU’s rank among males improved to No. 6 from No. 9 in the Spring. Within the UI athletic apparel ranking, LULU continued to be No. 2 overall but moved to the No. 1 spot among UI females, outpacing Nike for the first time,” Zvejnieks wrote in a new note to clients.
The Piper Sandler analyst also believes Lululemon is better positioned than its competitors on the inventory front.
“We continue to believe LULU has best-in-class product innovation which should drive demand, and we do not believe LULU will have to react as much as peers to the more intense promotional environment,” Piper Sandler said.
The analyst firm is anticipating a cold winter and improved in-stock levels at retailers, which should help drive general outperformance in outerwear.
LULU Price Action: Lululemon has a 52-week high of $410.70 and a 52-week low of $251.51.
The stock closed Tuesday up 2.01% at $295.68. Lululemon shares were up another 0.16% in after hours at time of publication, according to Benzinga Pro.
Photo: Mike Mozart from Flickr.
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