HSBC analyst Akshay Gupta upgraded Lululemon to Buy from Hold with a $425 price target following the Q1 earnings report. The company’s fiscal 2024 guidance is broadly unchanged while the recent share selloff implied the market may have been bracing for some downward revision, the analyst tells investors in a research note. The firm says Lululemon’s “superior margin profile” and product launch pipeline make for a “quite compelling” equity story. The shares have been “overly punished” despite “limited” earnings estimate revisions, contends HSBC.
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