'Stand-Out Is An Understatement,' Morgan Stanley Comments On Lululemon Athletica's Q2 Performance

Morgan Stanley analyst Alex Straton reiterated an Overweight rating on the shares of Lululemon Athletica Inc LULU and raised the price target to $343 from $315.
The company's Q2 earnings and Q3 guidance both were above Street expectations.
Straton said the company's performance demonstrates its ability to outperform in a challenging environment.
She noted that raised FY guidance stood out in a sea of Softlines Retail cuts and even embedded 2H22 performance deceleration.
Straton added that the stock could see more growth, having bounced more than 10%, reversing nearly all of its declines since mid-August.
She cited that Lululemon's inventory is the only thing to pick at, but she isn't raising alarm bells.
Price Action: LULU shares are trading higher by 7.95% at $317.86 on the last check Friday.

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