By Dhirendra Tripathi
Investing.com – Lululemon (NASDAQ:LULU) stock was up 0.5% in Wednesday’s premarket trading on reports Goldman Sachs (NYSE:GS) has rated the maker of yogawear as a ‘conviction buy’ with a $447 target.
Analyst Brooke Roach’s target for the stock carries some 20% upside from its close of $370.77 on Tuesday.
Roach believes the recovery from COVID-19-driven lockdown has been supportive for apparels and brands, and the company used the opportunity to consolidate its leadership in the digital channel.
According to reports, Roach views the company as “a leader in driving online to offline consumer connection with meaningful opportunity to continue to consolidate mindshare in the marketplace.” She said that the company has many growth opportunities and that the stock holds an attractive risk-reward balance.
For the ongoing second quarter, Lululemon expects net revenue to be in the range of $1.30 billion to $1.33 billion. Adjusted diluted earnings per share are seen between $1.10 and $1.15.
It has guided for adjusted diluted EPS of $6.73-$6.86 on revenue of $5.82 billion-$5.90 billion in fiscal 2021.