Lululemon is set to open at a record high, but a top analyst says shares are fully valued

  • Lululemon Athletica was set to open at a record high Thursday after its fourth-quarter report beat across the board. 
  • Thursday's Q4 revenue number topped the company's preannounced guidance from January.
  • Lululemon shares were trading up nearly 14% ahead of Thursday's opening bell.
  • Watch Lululemon Athletica trade live.

Lululemon Athletica shares were set to open at a record high Thursday morning after the company announced fourth-quarter results that beat across the board.

The athletic-apparel retailer earned an adjusted $1.85 a share on revenue of $1.2 billion, topping the $1.74 and $1.15 billion that was expected by the Bloomberg consensus. The revenue number was particullarly impressive as Lululemon in January raised its guidance for Q4 to a range between $1.14 billion and $1.15 billion. 

Luluemon said it sees full-year earnings per share of between $4.48 and $4.55 a share, beating the $4.41 that Wall Street analysts surveyed by Bloomberg were anticipating. 

The impressive results sent shares soaring in after-hours trading on Wednesday. They were set to open higher on Thursday by about 14%, at what would be a record high of $167.25. 

But the Jefferies analyst Randal Konik says that while the fundamentals of the company are still strong, the stock is fully valued. 

"Strong traffic has continued into 1Q, and the biz is progressing across categories, geographies, and channels," he wrote in a note sent out to clients on Thursday.

"We see further oppty ahead, as digital initiatives take hold and the int'l growth story continues. That said, valuation already reflects a lot of these prospects, so we remain Hold-rated."

Konik has a $156 price target — almost 7% below where shares were set to open on Thursday.

Lululemon was up almost 21% this year through Wednesday.    

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