Lululemon's Stock Rises After Sterne Agee Meeting With CFO Prompts Upgrade
Lululemon Athletica Inc.'s stock rose 1.3% in light premarket trade Wednesday, after Analyst Sam Poser at Sterne Agee upgraded the yoga gear maker, saying a meeting with the company's new chief financial officer left him more upbeat about future prospects. Analyst Sam Poser raised his rating to buy from neutral, and set a stock price target of $77, which is 16% above Tuesday's closing price of $66.41. "Prior to today, we were very wary of long-term growth opportunities at [Lululemon]," Poser wrote in a note to clients. "However, after spending a brief bit of time with the new CFO, we are becoming confident that ongoing margin and sales growth is in the offing." Earlier this year, Lululemon named Stuart Haselden, formerly the CFO of J. Crew Group Inc., as its new CFO. The stock has rallied 19% year to date, while the S&P 500 has gained 0.9%.
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