Piper Sandler Raises Lululemon (LULU) Price Target, Keeps Neutral Rating

On Tuesday, June 3, Piper Sandler analysts raised the price target on Lululemon Athletica Inc. (NASDAQ:LULU) from $280 to $315 and kept a “Neutral” rating. This decision comes just before the company is set to report its financial results for the first quarter of fiscal 2025 on Thursday, June 5.

Piper Sandler analysts expect Lululemon Athletica Inc. (NASDAQ:LULU) to beat the buy-side expectations in the earnings report. The analysts believe the guidance given in March was conservative, especially since February showed weaker performance and traffic was volatile. Analysts also expect the company to maintain its 2025 outlook.

Piper Sandler Raises Lululemon (LULU) Price Target, Keeps Neutral Rating

A store employee in an athletic apparel store restocking merchandise.

Piper Sandler noted that in the US, trends for Lululemon Athletica Inc. (NASDAQ:LULU) look stable. New product lines like Daydrift and Glow Up are performing well, with the Daydrift line mostly sold out online and Glow Up now available in more colors. Piper Sandler analysts also mentioned the launch of the Align No Line set in May, which they expect management to welcome positively.

For the second quarter of fiscal 2025, Piper Sandler expects Lululemon Athletica Inc.’s (NASDAQ:LULU) guidance will meet consensus expectations, with sales growth of 8% and an earnings per share of $3.29. The analysts consider the current valuation at 21 times the 2025 consensus earnings as fair.

Lululemon Athletica Inc. (NASDAQ:LULU) is a Canadian multinational retailer of athletic apparel, footwear, and accessories for yoga, running, training, and other activities.

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Disclosure: None.