Lululemon Athletica | Athletic business at an attractive price
Current price - $304
Target price - $408
Growth potential - 34.2% 🔥
Investment horizon - 1 year
Lululemon Athletica is a Canadian international company that produces sportswear. The company has a strong brand and demonstrates confident dynamics of financial results. Traditionally, Lululemon has been quite expensively valued as a growing company, but the recent strong wave of stock sales has created an attractive buying opportunity. The fair price of Lululemon shares is $408, which implies growth potential of 34.2%.
Investment theses
🔼Strong financial indicators.
Lululemon demonstrated good reporting for the results of 1Q2024. The company's revenue increased by 10% y/y to $2.21 billion. Growth in the US market slowed significantly, but this was offset by a jump in sales in international markets. Net profit increased by 11% and amounted to $321 million ($2.54 per share). Amid slowing sales in the US, Lululemon gave a rather weak forecast for Q2 2024, but expects the situation to improve in the second half of the year. Based on the results of 2024, earnings per share are expected to be in the range of $14.27-14.47, and revenue - at the level of $10.7-10.8 billion.
🔼Attractive valuation.
The slowdown in revenue growth in the US and the subsequent weak forecast of the company at the beginning of the year caused a wave of sell-offs in Lululemon shares. The company is now valued at 21.8 expected annual profits, which is half the 5-year average for the company's shares.
How to invest
Open a free brokerage account with Unibank Invest and start trading directly from your phone. Our mobile app grants you access to the world's largest exchanges and popular investment instruments like stocks, bonds, and ETFs.
To open a brokerage account, fill in an online form on unibankinvest.am or call +374 43 004 382.
#Investments #Finance #UnibankInvest #MarketTrends #InvestingTips #bonds #stocks
‼️ Disclaimer
The information is only indicative, is not exhaustive and is provided solely for discussion purposes. The information should not be regarded as a public offer, request or invitation to purchase or sell any securities, financial instruments or services.
No guarantees in direct or indirect form, including those stipulated by law, are provided in connection with the specified information and materials. The information presented above cannot be considered as a recommendation for investing funds, as well as guarantees or promises of future profitability of investments.
The risk of negative consequences as a result of the use of the above recommendations, opinions and statements is fully borne by the addressee of the information.
Current price - $304
Target price - $408
Growth potential - 34.2% 🔥
Investment horizon - 1 year
Lululemon Athletica is a Canadian international company that produces sportswear. The company has a strong brand and demonstrates confident dynamics of financial results. Traditionally, Lululemon has been quite expensively valued as a growing company, but the recent strong wave of stock sales has created an attractive buying opportunity. The fair price of Lululemon shares is $408, which implies growth potential of 34.2%.
Investment theses
🔼Strong financial indicators.
Lululemon demonstrated good reporting for the results of 1Q2024. The company's revenue increased by 10% y/y to $2.21 billion. Growth in the US market slowed significantly, but this was offset by a jump in sales in international markets. Net profit increased by 11% and amounted to $321 million ($2.54 per share). Amid slowing sales in the US, Lululemon gave a rather weak forecast for Q2 2024, but expects the situation to improve in the second half of the year. Based on the results of 2024, earnings per share are expected to be in the range of $14.27-14.47, and revenue - at the level of $10.7-10.8 billion.
🔼Attractive valuation.
The slowdown in revenue growth in the US and the subsequent weak forecast of the company at the beginning of the year caused a wave of sell-offs in Lululemon shares. The company is now valued at 21.8 expected annual profits, which is half the 5-year average for the company's shares.
How to invest
Open a free brokerage account with Unibank Invest and start trading directly from your phone. Our mobile app grants you access to the world's largest exchanges and popular investment instruments like stocks, bonds, and ETFs.
To open a brokerage account, fill in an online form on unibankinvest.am or call +374 43 004 382.
#Investments #Finance #UnibankInvest #MarketTrends #InvestingTips #bonds #stocks
‼️ Disclaimer
The information is only indicative, is not exhaustive and is provided solely for discussion purposes. The information should not be regarded as a public offer, request or invitation to purchase or sell any securities, financial instruments or services.
No guarantees in direct or indirect form, including those stipulated by law, are provided in connection with the specified information and materials. The information presented above cannot be considered as a recommendation for investing funds, as well as guarantees or promises of future profitability of investments.
The risk of negative consequences as a result of the use of the above recommendations, opinions and statements is fully borne by the addressee of the information.
