Lululemon athletica: Both near-term catalysts and long-range outlook can support stock upside
Telsey notes amid concerns about the sporting goods industry generally, LULU has demonstrated continued improvement in comp momentum both with its recent results and its outlook, in firm's opinion. They see the strength of the brand, the control of distribution, and the ongoing appeal of its specific category as allowing it to stand somewhat aside from the overall broader channel. Co invented the space in which it operates and continues to enjoy strong brand loyalty and association within the segment, in firm's view. As firm discuss further in their report, they see the potential for investors to benefit both from NT catalysts that can continue to support comp growth in the second half of this year as well as from a strong cash-generating model over the LT; Outperform, $78 tgt