Goldman Sachs has upped its rate focus on on athleisure retailer Lululemon , describing it as a “best-in-class industry share gainer.” The financial institution reiterated its get ranking on the stock in a be aware Friday and raised its 12-month price goal to $431 from $383 prior. That represents about 32% upside to the stock’s closing rate of $326.39 Friday. Goldman analyst Brooke Roach explained Lululemon, recognized for its trendy but pricey workout attire and loungewear, as a “structural share gainer with ongoing wide-based mostly momentum and many levers for very long-phrase growth.” “We carry on to imagine Lululemon’s innovation motor is greatest-in-course, top us to feel that Lululemon will continue to reveal higher than-pattern expansion,” she wrote. “We feel Lululemon is well-positioned given confined reliance on promotions and powerful pricing power. We also take note that in the confront of a demanding and volatile macro, Lululemon continues to display potent execution regardless of difficult compares.” She added that the corporation will advantage from “expense tailwinds” in 2023, which would help deliver “stable” earnings per share progress. Even so, the inventory is no lengthier on Goldman’s conviction listing — the crème de la crème of the bank’s universe of invest in-rated stock picks. Lululemon’s removal from the list arrived as the sportswear maker defeat analysts’ estimates on profits and earnings for the third quarter, but offered softer-than-anticipated guidance for the holiday getaway season. “While we keep on being constructive on Lululemon’s growth potential customers and current market share winner position, we accept that the organization has been a noteworthy comp outperformer in 2022 on the again of what we see as a report yr of innovation and targeted visitors-driving products,” Roach included. “As we appear into 2023, we believe that accelerated progress and outperformance as opposed to the sector may well be modestly harder to accomplish.” The inventory remains a beloved amongst Wall Avenue analysts, with 67% of analysts masking it giving it a buy ranking and average opportunity upside of 22.6%, in accordance to FactSet facts. — CNBC’s Michael Bloom and Melissa Repko contributed to reporting
