JFrog stock rises as Cantor Fitzgerald maintains Overweight rating after strong Q2
On Tuesday, Piper Sandler analysts lifted the price target for Lululemon Athletica Inc. (NASDAQ:LULU) to $315 from $280, maintaining a Neutral rating. The adjustment comes as Lululemon prepares to report its first-quarter 2025 earnings this Thursday. Currently trading at $327.41, the stock has risen approximately 30% since its April lows, with short interest decreasing by 13%. According to InvestingPro analysis, Lululemon maintains a "GREAT" financial health score, with impressive gross profit margins of 59.2%.
Piper Sandler analysts anticipate that Lululemon will exceed buy-side expectations for the upcoming earnings report. They noted that the guidance issued on March 27 was likely conservative, considering the weaker performance in February and volatile traffic at the time. Analysts expect the company’s 2025 outlook to be reiterated. The company’s strong financial position is evident in its balance sheet, with InvestingPro data showing more cash than debt and liquid assets exceeding short-term obligations.
According to Piper Sandler, U.S. trends for Lululemon appear stable, with new product lines like Daydrift and Glow Up performing well. The Daydrift line has largely sold out online, while Glow Up is now available in extended colors. The analysts also highlighted the mid-May release of the Align (NASDAQ:ALGN) No Line set, predicting a positive reception from management.
Piper Sandler expects Lululemon’s second-quarter 2025 guidance to align with consensus expectations, projecting sales growth of 8% and an earnings per share of $3.29. The analysts view the current valuation at 21 times the 2025 consensus as reasonable, although they acknowledge ongoing debates about competition and the brand’s maturity.
As Lululemon’s first-quarter earnings report approaches, the focus remains on steady improvement in the U.S. market throughout 2025, which Piper Sandler analysts believe is crucial for attracting long-term investors back to the company. Based on InvestingPro Fair Value analysis, Lululemon currently appears undervalued, with 6 additional ProTips and comprehensive financial metrics available to subscribers, including detailed profitability analysis and growth forecasts in the Pro Research Report.
In other recent news, Lululemon Athletica Inc. is preparing to announce its first-quarter earnings for fiscal year 2025, with several analysts weighing in on the company’s prospects. Raymond (NSE:RYMD) James has maintained a Market Perform rating, projecting a 7% increase in revenue, with significant growth expected in China. They express concern over domestic revenue and margin challenges, citing macroeconomic uncertainties and tariff pressures. Meanwhile, TD Cowen has raised its price target to $373, maintaining a Buy rating, and highlights Lululemon’s strategic pricing adjustments as a positive factor. Stifel also maintains a Buy rating with a $353 target, expecting the company’s earnings to reflect improving trends in the U.S. women’s segment and international growth opportunities.
Citi has increased its price target to $325, maintaining a Neutral rating, and anticipates that Lululemon may surpass first-quarter earnings per share expectations, driven by strong sales in the Americas and China. However, BNP Paribas (OTC:BNPQY) Exane remains skeptical, reiterating an Underperform rating with a $194 target, citing product missteps and competitive pressures in North America. They express concerns over the company’s pricing strategy and inventory management, pointing to markdowns on new products as a negative indicator. These recent developments highlight varying analyst perspectives on Lululemon’s financial outlook and strategic positioning.
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