December 12, 2018 / 1:49 PM / 10 months ago

BUZZ-Lululemon: Citi raises "one-of-a-kind brand" to 'buy'

** Lululemon Athletica up 2.8 pct at $120.14 premarket after Citigroup raises to “buy” from “neutral”

** “... we think this is a brand to own in uncertain times – one with the strongest brand positioning, comp momentum, int’l prospects, margins and ROIC in our coverage,” Citi says

** Citi says LULU a victim of recent market shakedown, but its 29 pct drop from Oct. 1 record high gives a great entry point to the “one-of-a-kind brand”

** Citi keeps its $152 PT and estimates on LULU unchanged

** The mean rating of 35 Wall Street analysts covering LULU is “buy,” while the median PT is $165 - Refinitiv data

** LULU’s YTD ~49 pct jump trails only Under Armour’s ~53 pct among peers

** But while its fwd PE of 27.2x is much lower than UAA’s 64.1x, it is still higher than Nike’s 25x and Adidas’s 20.4x, Refinitiv data shows (Reporting by Savio D’Souza)

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