BTIG Reiterates Buy on Lululemon (LULU) Despite Weak North America Trends

Lululemon Athletica Inc. (NASDAQ:LULU) is one of the best affordable long term stocks to buy according to hedge funds. On January 22, BTIG analyst Janine Stichter reiterated a Buy rating on Lululemon Athletica Inc. (NASDAQ:LULU) and maintained a price target of $303. Sticher emphasized that the investment opportunity lies in Lululemon’s execution strategy rather than immediate product innovations.

The analyst highlighted that while Lululemon expressed excitement about its new “Get Low” performance fabric designed for weight training, investor expectations for the near-term impact of new products remain relatively low. Stichter identified the disjointed launch of the “Get Low” collection as highlighting opportunities for better internal alignment and a cleaner go-to-market strategy at the company.

To Stichter, Lululemon remains in the “show me” camp because the stock lacks near-term catalysts for growth acceleration. And, the analyst stated, investors are waiting for proof that the company’s turnaround efforts are gaining traction.

Stichter also touched on Lululemon’s performance in North America. The analyst noted that this performance is weak, and that the weakness stems partly from a lack of product newness. Nonetheless, Stichter believes opportunities exist across presentation, merchandising, and marketing coordination that may improve outcomes over time.

The analyst pointed to early positive changes in product and marketing execution. This includes what she described as a more refined color palette, less emphasis on logos, and increased online merchandising by 2-piece sets. Stichter expects that these may eventually translate into better in-store presentation.

Lululemon Athletica Inc. (NASDAQ:LULU) is a Canadian athletic apparel retailer. The company designs, distributes, and sells performance apparel, footwear, and lifestyle products through its global network of stores and e-commerce platform.

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Disclosure: None. This article is originally published at Insider Monkey.