LULU stock was trading at $320.63 at close: 04:00 PM EDT

Tuesday saw a more than 7% increase in Lululemon Athletica (NASDAQ:LULU) shares after JP Morgan analyst Matthew Boss raised his EPS projections for the retailer’s Q3 report. The Boss increased his forecast for EPS to $2.05. He also increased his forecast for sales growth to 29.6%. The first number is far greater than the typical Wall Street projection of $1.96 for the early December report, and the second number is higher than the 25% guidance given by management in its Q2 earnings report.

He said that the company’s expansion into new categories like shoes, its strong inventory management, its positive sales trends in all categories, but especially in menswear, and its relatively high exposure to wealthy consumers, who are less affected by inflation, were all reasons for the increase in optimism. Boss thinks that strong demand and inventory control are also important to protect gross margins, which are on track to grow over time. Boss still gave the company a rating of “buy,” but he lowered his price target from $464 to $413.

LULU stock research

Shares of Lululemon (NASDAQ:LULU) closed the most recent trading session at $298.63, up 1.9% over the previous four weeks. Wall Street analysts’ short-term price predictions, on the other hand, show that the business can still have enough of potentials. The average estimate of $391.04, which is based on price goals, suggests a potential increase of 30.9%.

The mean forecast, which is made up of 23 short-term price goals, has a standard deviation of $74.17. The most optimistic expert thinks the stock will go up by 77.8% to $531, while the most pessimistic thinks it will go down by 33% to $200. In this instance, it is crucial to remember the standard deviation because it shows how different the estimates are. The degree of agreement among experts increases as the standard deviation decreases.

While the consensus price goal is a highly sought-after measure for investors, relying only on it to decide how much money to invest may not be the best course of action. This is because analysts’ skills and objectivity when making price predictions have long been the subject of discussion.

A strong average price objective, however, is not the only sign of future growth for LULU. This idea is backed up by the fact that most analysts agree that will be possible for the business to generate results that are better than what they expected. Although a positive trend in earnings estimate revisions cannot predict how much stock may rise, it has been shown to be very effective at foretelling an increase.

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