Amid Macro Headwinds, Lululemon Shines Bright With Topline Growth And Broad-Based Momentum: Morgan Stanley

Morgan Stanley analyst Alex Straton reiterated an Overweight rating on the shares of Lululemon Athletica Inc LULU, raising the price target from $405 to $424.
Clean beat & raise stands out this earnings season, & quells quarter-to-date demand & inventory concerns, pushing the stock up during the session, said the analyst.
This makes LULU one of the only stocks in the analyst’s coverage to deliver an across-the-board beat & raise this earnings season, in addition to On Holding AG ONON.
According to the analyst, the topline momentum was broad-based across channels, geographies, categories, and perhaps most notably, across new and existing customer cohorts, added the analyst.
LULU’s fundamentals & performance resilience remain on display, the two key drivers of the analyst’s Overweight rating.
The analyst noted that the company’s fundamentals are impressive on a standalone basis, especially relative to peers.
The Q1 results further emboldened the analyst’s view that LULU can likely weather the macro headwinds more effectively than peers.
LULU is a long-term topline grower, supported by compelling secular tailwinds (e.g., performance/athleisure focus), a market share gain opportunity, & credible future revenue driver, said the analyst.
Also Read: Lululemon Stock Draws Praise From Analysts After Q1 Results: 'Ample Runway For Growth'
Price Action: LULU shares are trading higher by 11.99% at $367.73 on the last check Friday.

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