Morgan Stanley Maintains Buy Rating on Lululemon Athletica (LULU)

In a report released on May 19, Matthew Boss from J.P. Morgan maintained a Buy rating on Lululemon Athletica Inc (NASDAQ:LULU) and set a price target of $389.00.

The analyst is bullish on Lululemon Athletica Inc. (NASDAQ:LULU) because of its solid operations, corroborated by its strong fiscal Q4 2024 results.

Net revenue for the quarter underwent a 13% growth to $3.6 billion, or 14% on a constant dollar basis. Net revenue for the Americas rose 7% (or 8% on a constant dollar basis), while international net revenue experienced a notable 38% surge (or 40% on a constant dollar basis).

Lululemon Athletica Inc. (NASDAQ:LULU) also reported a 15% growth in gross profit to $2.2 billion in fiscal Q4 2024, while gross margin rose 100 basis points to 60.4%.

The company plans to continue this growth momentum and expects net revenue for 2025 to fall between $11.150 billion and $11.300 billion, representing a growth of 5% to 7%.

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Disclosure: None.