According to the people buying it today, its perfectly priced up here.
LLL - Lululemon (Toronto Stock Exchange) - Page 3
Equities research analysts at Wall Street Strategies reiterated a "buy" rating on shares of Lululemon (NASDAQ: LULU) in a research note to investors on Monday.
Separately, analysts at Capstone raised their price target on shares of Lululemon from $100.00 to $135.00 in a research note to investors on Tuesday, July 5th. Also, analysts at Sterne Agee downgraded shares of Lululemon from a "buy" rating to a "neutral" rating in a research note to investors on Thursday, June 30th.
TheStreet Ratings rates Lululemon as a buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures, notable return on equity, expanding profit margins and impressive record of earnings per share growth.
First up, LULU has added about 1% after UBS started the stock with a "buy." Today's uptick has pushed the shares within range of notching a fifth straight weekly close above $70, as well as solidifying their best monthly settlement ever. Despite LULU's exceptional year-to-date gain of 57%, quite a few traders seem to be looking for a pullback. Although short interest decreased 3.6% during the past month, it still accounts for 11.5% of the security's available float. At LULU's average pace of trading, it would take one week for all of these bearish bets to unwind, which could help to boost the stock even higher going forward.
Am I missing something here?
In doing my DD i compared this to GAP and Reitmans among others and I have no idea why LLL is worth buying.
LLL made $1.26 per $70 share
Reitmans made .72 per $15 share
GAP made 1.56 per $26 share
LLL assets $700m equity $600m
RET.A assets $600m equity $500m
LLL market cap 8 billion
Ret.a market cap 1 billion
I do not find anything that would make LLL a $10Billion company.
Quote from a sixteen year old high school student.
When asked why she got mom to drive the 64 kilometers (that's one score plus nineteen miles in Americanese) to Square One in Mississaga. Just to go to a LuLuLemon location and spend $110 on one pair of pants.
" They will last me ten times as long as the ones I get from WalMart".
Well maybe they will last twice as long or maybe 4 times as long... I seriously doubt 10 times as long...who knows..
It is the perception that they are far superior to anyone elses stuff.
Lulu...knows how to market to this demographic.
Maybe they should do marketing for RIM!!!