Is lululemon athletica (NASDAQ:LULU) Now a Poor Investment? FBR Capital Downgrades Shares

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lululemon athletica (NASDAQ:LULU) Receives a Downgrade

It will be interesting to watch the trading activity for lululemon athletica (NASDAQ:LULU) today as FBR Capital cut the shares of the stock from a Mkt Perform rating to a Underperform. In addition to this downgrade, analysts at FBR Capital set a $42 Estimated Target Price which is a change of -20.00%.

From a total of 20 analysts covering Lululemon Athletica Inc. (NASDAQ:LULU) stock, 10 rate it a ”Buy”, 2 a “Sell”, and 8 a ”Hold”. This means that 50% of the ratings are positive. The highest target price is $69 while the lowest target price is $42. The mean of all analyst targets is $61 with a 16.19% above today’s ($52.5) stock price. Lululemon Athletica Inc. was the topic of 26 analyst reports since August 18, 2015 according to the firm StockzIntelligence Inc. Oppenheimer maintained shares on November 19 with “Outperform” rating. M Partners initiated shares with “Buy” rating and $69 target share price in a report from a September 17. Wells Fargo reinitiated LULU stock in a recent report from October 22 with “Market Perform” rating. Canaccord Genuity maintained the rating on September 11. Canaccord Genuity has a “Hold” rating and a $54 price target on shares. Finally, Citigroup initiated the stock with “Buy” rating in a report issued on an October 7.

The stock decreased 0.85% or $0.45 during the last trading session, striking $52.5. Approximately 1,100 shares of stock traded hands. Lululemon Athletica inc. (NASDAQ:LULU) has declined 19.93% since April 27, 2015 and is downtrending. It has underperformed by 19.04% the S&P500.

 Is lululemon athletica (NASDAQ:LULU) Now a Poor Investment? FBR Capital Downgrades Shares

Analysts await Lululemon Athletica inc. (NASDAQ:LULU) to reports earnings on December, 10. They expect $0.37 EPS, down 11.90% or $0.05 from last year’s $0.42 per share. LULU’s profit will be $52.01 million for 35.47 P/E if the $0.37 EPS becomes reality. After $0.34 actual EPS reported by Lululemon Athletica inc. for the previous quarter, Wall Street now forecasts 8.82% EPS growth.

lululemon athletica inc. is a designer and retailer of technical athletic apparel. The company has a market cap of $7.38 billion. The Firm offers a line of apparel and accessories for women, men and female youth. It has 28.04 P/E ratio. The Company’s apparel assortment includes items, such as pants, shorts, tops and jackets designed for healthy lifestyle activities and athletic pursuits, such as yoga, running, general fitness and dance-inspired apparel for female youth.

According to Zacks Investment Research, “lululemon athletica Inc. designs and retails athletic clothing for women, men, and female youth. Its apparel assortment, including items, such as fitness pants, shorts, tops and jackets, is designed for activities such as yoga, running and general fitness. The Company’s fitness-related accessories include an array of items, such as bags, socks, underwear, yoga mats, instructional yoga digital versatile discs and water bottles. lululemon athletica Inc. is based in Vancouver, Canada.” Get a free copy of the Zacks research report on Lululemon Athletica inc. (LULU)

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