Anything For You All: Lululemon surges to a record high, but a top analyst says shares are fully valued

Kamis, 28 Maret 2019

Lululemon surges to a record high, but a top analyst says shares are fully valued

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Lululemon surges to a record high, but a top analyst says shares are fully valued

Lululemon Athletica opened at a record high Thursday after its fourth-quarter report beat across the board.
Thursday's Q4 revenue number topped the company's preannounced guidance from January.
Lululemon shares were trading up more than 15% on Thursday.
Watch Lululemon Athletica trade live.

Lululemon Athletica shares soared to a record high Thursday morning after the company announced fourth-quarter results that beat across the board.

The athletic-apparel retailer earned an adjusted $1.85 a share on revenue of $1.2 billion, topping the $1.74 and $1.15 billion that was expected by the Bloomberg consensus. The revenue number was particularly impressive as Lululemon in January raised its guidance for Q4 to a range between $1.14 billion and $1.15 billion.

Lululemon said it sees full-year earnings per share of between $4.48 and $4.55 a share, beating the $4.41 that Wall Street analysts surveyed by Bloomberg were anticipating.

The impressive results sent shares soaring more than 16% Thursday morning to a record high of $171 piece, but the Jefferies analyst Randal Konik says even though the fundamentals of the company are strong, the stock is fully valued.

"Strong traffic has continued into 1Q, and the biz is progressing across categories, geographies, and channels," he wrote in a note sent out to clients on Thursday.

"We see further oppty ahead, as digital initiatives take hold and the int'l growth story continues. That said, valuation already reflects a lot of these prospects, so we remain Hold-rated."

Konik has a $156 price target — almost 7% below where shares were set to open on Thursday.

Lululemon was up almost 21% this year through Wednesday.

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