Jefferies Has Hold on Lululemon Athletica

Jefferies & Co. is out with a research report on Lululemon Athletica LULU and it has a Hold rating and a $59 price target on shares. In a note to clients, Jefferies & Co. writes, "LULU is down 5% on management's comments around LT operating margins at a competitor conference. The 25% op. margin data-point is not new and consistent with management's approach to past long-term margin outlooks (i.e. conservative). In our opinion, the target is more theoretical than time specific. Further, we continue to see an upward LT bias to op margins given the brand's momentum and margin accretive catalysts." Shares of LULU are off $2.11 to $53.66.