Oppenheimer Raises Target on lululemon

Oppenheimer on Friday lifted its fair valuation on lululemon athletica from $65 to $68 as it believes the company is poised for a double digit earnings per share growth. “Brands with control of own destiny without over-distribution fare best in today’s environment, and LULU fits the bill, with US door growth now moderating as international scales, driving mid-single-digit plus square feet growth all-in. Near term, we think Q2 comps are running at high end of low-to-mid single digit guide with ’17 estimates poised for upside; greater clarity on the path toward 2020 goals is key to additional multiple expansion,” Oppenheimer said in a research note to clients. The research firm maintained its outperform rating on the stock. Shares were 0.8% higher in midday trade.