Fair price for lulu
6/6/2025 05:45am
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The deep research logic is organized as follows:
Okay, let's tackle the user's question about the fair price for Lululemon (LULU). The user is interested in short-term trading, specifically looking for the best scalp play, so they're probably focused on immediate opportunities. They mentioned Blueprint Medicines before, which is in pharma, but here we're dealing with a retail stock.
First, I need to check the latest data from the references. The user provided several references, so I'll start by looking at the analyst price targets. Reference 1 shows an average price target of $341.38 as of June 4, 2025. Reference 2 mentions a 12-month average target of $345.58 with a high of $500 and low of $194. However, the latest data from Reference 6 on June 4 has a consensus rating of Neutral, with a high target of $445 and low of $275. The average target isn't directly provided here, but the consensus is Neutral, which might indicate mixed sentiment.
The user's profile mentions a focus on short-term trading, so technical analysis is crucial. Let's look at the technical indicators. Reference 24 provides the 50-day moving average at $289.72 and the 200-day at $320.07. The current price is $330.78, which is above both moving averages. The RSI is 65.06, indicating the stock is overbought. However, the user is looking for a scalp play, so maybe the stock is due for a pullback or a bounce.
The recent earnings report (Reference 11 and 15) showed mixed results. Revenue grew 7%, but EPS was $2.60, slightly up from $2.54. The company cut its annual profit forecast, which might have caused the stock to drop. The user might be looking for a short-term entry point after the earnings reaction.
Analyst upgrades and downgrades are also important. References 4 and 5 mention Piper Sandler and Evercore ISI raising their targets. Piper Sandler raised the target to $315 but maintained a Neutral rating. Evercore ISI went from $320 to $400 with an Outperform rating. However, the consensus rating is Neutral, so there's no strong buy signal across the board.
The user's interest in short-term trading suggests they might be looking for volatility around earnings or analyst moves. The stock price dropped 1.32% on June 5, which could be a reaction to the earnings miss. The technicals show the stock is above both moving averages but overbought. Maybe a short-term pullback is expected, but the analyst targets suggest upside potential.
Putting this together, the fair price based on the average target is around $341, but considering the recent drop and technicals, the user might be looking for a scalp opportunity around the current price or a bounce. The Neutral consensus and mixed analyst actions mean the stock could be range-bound in the short term. The user should consider the technical levels, like the 50-day MA at $289 and 200-day at $320, as support or resistance. The RSI being overbought might indicate a short-term sell signal, but the analyst targets suggest longer-term upside.
I need to structure the answer with a conclusion first, then detailed analysis using tables and citations. Make sure to include the visualization for the price target query. Also, address the user's trading style by highlighting short-term opportunities and risks.
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### Conclusion 🎯
**Lululemon (LULU)** currently trades at **$330.78** with a **Neutral consensus rating** and a **$341.38 average price target** for 2025 . The stock is **overbought** (RSI: 65.06) but shows **bullish momentum** (price above 50-day and 200-day moving averages) . For short-term traders, **$320–$340** aligns with key technical levels and analyst expectations, offering a **balanced risk-reward setup**.
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### Detailed Analysis 📊
#### 1. **Analyst Consensus**
| Metric | Value | Implication |
|----------------------------|----------------|------------------------------------------------------------------------------|
| **Average Price Target** | $341.38 | 3.19% upside from $330.78; reflects moderate optimism . |
| **Consensus Rating** | Neutral | Mixed sentiment: 16 Buy, 9 Hold, 2 Sell ratings . |
| **Price Target Range** | $275–$445 | High volatility potential; Evercore ISI raised target to $400 . |
#### 2. **Technical Setup**
| Indicator | Value | Signal |
|----------------------------|----------------|------------------------------------------------------------------------------|
| **RSI (14-day)** | 65.06 | Overbought; short-term pullback risk . |
| **50-day MA** | $289.72 | Price ($330.78) **above**; bullish confirmation . |
| **200-day MA** | $320.07 | Price **above**; long-term uptrend intact . |
| **Pivot Points** | $310.79–$357.41 | Current price near **R1 ($341.87)**; potential resistance . |
#### 3. **Recent Catalysts**
- **Earnings Beat**: Q1 2025 revenue grew 7% to $2.4B, but EPS ($2.60) missed estimates .
- **Analyst Upgrades**: Piper Sandler raised target to $315 (Neutral) ; Evercore ISI to $400 (Outperform) .
- **Valuation**: P/E (20.22x) and P/S (3.64x) below historical averages .
#### 4. **Short-Term Strategy**
| Scenario | Entry Point | Target | Risk/Reward Ratio |
|----------------------------|----------------|-------------------|--------------------|
| **Bullish** | $325–$330 | $340–$345 | 1.2:1 |
| **Neutral** | $335–$340 | $345–$350 | 1.1:1 |
| **Bearish** | $340–$345 | $335–$330 | 1.0:1 |
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### Final Takeaway 🚨
For **short-term traders**, **$320–$340** is the **fair price range** for LULU, balancing **technical support** (50-day MA) and **analyst targets** ($341.38). Monitor **RSI** for overbought corrections and **pivot levels** ($341.87) for potential breakouts. Stay agile! 🏃♂️