Jefferies Maintains Hold on Lululemon's Slight 3Q EPS Beat

Jefferies & Company has published a research report on Lululemon Athletica LULU after the company released 3Q EPS results with a slight beat. In the report, Jefferies writes, "LULU eked out a slight beat with 3Q earnings with EPS, SSS, and margins all at or above the high end of guidance. Management is also raising 4Q guidance by 6c. While expectations were low, the headline of a "sales miss" (vs. cons, first in over two years) keeps the stock under pressure for the time being. Shares look to be down in premarket action on a sales miss. However, the story is far from broken and likely subject to some near term macro choppiness. We are turning more positive as valuation normalizes but wait for some stability in shares before making a longer-term call." Jefferies maintains its Hold rating and $59 price target on Lululemon, which closed yesterday at $49.70.