lululemon(US:LULU) Benzinga·2024-08-30 18:29Core Insights - Lululemon Athletica reported mixed financial results for Q2, with revenue missing expectations but EPS beating forecasts [1][2] - Analysts have varied ratings and price targets, reflecting differing views on the company's growth potential and challenges [1][2] Analyst Ratings and Price Targets - Truist Securities maintains a Buy rating with a price target of $310, citing strong international momentum and a $1 billion repurchase authorization [2] - Goldman Sachs holds a Neutral rating, raising the price target to $291 from $286, noting weaknesses in the U.S. women's business but offsetting growth in men's apparel and Canada [2] - Piper Sandler also maintains a Neutral rating, increasing the price target to $260 from $250, while adjusting EPS estimates for 2024 and 2025 to $13.88 and $14.75, respectively [3] - BMO Capital Markets reiterates a Market Perform rating with a price target of $265, highlighting better-than-expected gross margins [3] - JP Morgan maintains an Overweight rating with a price target of $338, suggesting potential growth from international expansion and new product categories [4] - Stifel keeps a Buy rating with a price target of $370, emphasizing the need for a turnaround in the U.S. business [5] Financial Performance and Projections - Analysts have adjusted EPS estimates for 2024 and 2025, with Truist lowering projections to $14.05 and $15.40, while Piper Sandler increased estimates to $13.88 and $14.75 [2][3] - The company is expected to achieve mid-teens revenue growth and high-teens earnings growth through FY26, with modest improvements in operating margins [5] - Despite improvements in inventory and margins, Lululemon's gross margins remain below those of peers, and there are significant slowdowns in domestic and women's revenue [4][5] Market Sentiment and Stock Performance - LULU shares are currently trading lower by 0.72% to $257.14, reflecting market sentiment amid mixed analyst outlooks [5]