Lululemon (NASDAQ: LULU) has been on a tear this year.
Since bottoming on Christmas Eve, shares were up just over 37% by February 13. Since then, however, the stock has cooled down a bit and now sits just under 19% higher year-to-date.
But LULU is rising again today after two bullish analysts have boosted their price targets for the stock.
By mid-day Thursday, shares were up as much as 3.5%. The stock is up nearly 80% in the last year, and both analysts say the price could still head significantly higher over the next twelve months.
In a note to clients this week, Barclays called out Lululemon’s growing share of the athletic apparel market, its unique collaboration efforts with companies like SoulCycle, and its expansion in its men’s merchandise as the driving force behind the momentum for the brand and the fuel behind its growing sales.
“We see substantial runway for growth across categories, channels and geographies,” Barclays analyst Matthew McClintock wrote. “We continue to believe Lululemon’s [total addressable market] is ever-expanding as the company has entered into men’s in a meaningful way, has seen success in office, travel [and] commute offerings and continues to see a significant amount of opportunity in bras and outerwear.”
Earlier this month, Lululemon doubled down on its efforts in the men’s category by signing Eagles quarterback Nick Foles as an ambassador for the company’s men’s line. And Barclays believes the company “will outline an ample revenue opportunity but also margin expansion,” at its investor day next month.
Barclays has an Overweight rating on the stock and has set its price target for LULU at $200, indicating the firm sees 35% upside from here over the next twelve months, with McClintock emphasizing that the company has “a significantly larger [total addressable market] than even the most optimistic estimates likely expect.”
Cowen analyst John Kernan reiterated his Outperform rating on the stock on Thursday, and boosted his twelve-month price target to $190 per share – nearly 29% higher than the stock’s price as of this writing.
Kernan believes the company will continue to grow as its brand expands, and wrote in a note that “Emerging categories, geographies and new guest acquisition should support robust initial guidance for 2019.”
Lululemon is scheduled to report earnings after the bell next Wednesday, March 27, and year-over-year sales are expected to jump 23%, and earnings around 95%, results that could send the stock climbing higher.