Lululemon Shares Soar Above Analyst Target—What’s Next?

In recent trading, shares of Lululemon Athletica Inc (Symbol: LULU) have climbed above the average analyst 12-month target price of $383.65, currently trading at $385.69 per share. When a stock reaches an analyst’s target, they typically have two options: downgrade their valuation or raise their target price. The decision often hinges on the company’s fundamental developments that may be pushing the stock higher. If business prospects look bright, a higher target may be warranted.

Among the 29 analysts covering Lululemon, opinions vary. While the average target is $383.65, there are differing views: one analyst predicts a low target of $194.00, while another sets a high target of $480.00. The average target also has a standard deviation of $64.923, indicating a range of opinions.

The purpose of viewing the average target is to reflect a “wisdom of crowds,” combining insights from multiple analysts instead of relying solely on one expert’s opinion. As LULU trades above the average price target of $383.65 per share, investors are encouraged to evaluate the company’s outlook: Is $383.65 just a stepping stone towards a higher target, or has the valuation stretched too far, signaling a time to take profits? Below is a summary of the current analyst ratings for Lululemon Athletica Inc:

The average rating listed above ranges from 1 to 5, where 1 indicates a Strong Buy and 5 indicates a Strong Sell. This article features data sourced from Zacks Investment Research via Quandl.com.

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Additional Resources:

• BSGM Split History
• SPOK Stock Predictions
• Funds Holding EAC

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.