#2 - Lululemon (NASDAQ:LULU)
Another pure play for fitness and weight loss resolutions is Lululemon (NASDAQ:LULU). Lululemon shares similar qualities to Peloton. It has a dedicated, passionate consumer base. And with its acquisition of Mirror, the company now has an at-home fitness component to add to its established brand of athleisure – a category the company has essentially invented.
Deutsche Bank analyst Paul Trussell recently reiterated his Buy rating for LULU stock. Trussell also stuck by his $402 price target, which would represent a gain of nearly 10% from the stock’s current level. And right now, Lululemon may be even more attractive because the stock has dipped slightly in the last month. Perhaps investors were expecting lighter holiday sales.
There is some concern that LULU stock is overvalued or “priced for perfection.” Those that argue that point would say that any hiccup in the home fitness trend would be a negative for the company. There are two counter arguments. First, is the consideration that home fitness is not just a bubble. And the second is that athleisure wear is now mainstream.
Investors will get a better feel when the company reports earnings the week of January 11.
About Lululemon Athletica
Lululemon Athletica Inc, together with its subsidiaries, designs, distributes, and retails athletic apparel, footwear, and accessories under the lululemon brand for women and men. It offers pants, shorts, tops, and jackets for healthy lifestyle, such as yoga, running, training, and other activities. It also provides fitness-inspired accessories.
Read More - Current Price
- $362.85
- Consensus Rating
- Moderate Buy
- Ratings Breakdown
- 21 Buy Ratings, 6 Hold Ratings, 2 Sell Ratings.
- Consensus Price Target
- $476.57 (31.3% Upside)
