Q: Thoughts on LULU’s big drop? Is this something you would step into?
5i Research Answer:
LULU is starting to get attractive at 17X earnings. We think it recovers from its current malaise, though we do not think buyers need to rush here. The tariff mess and a China slowdown may still take some time to work out. We would be willing to wait a few weeks to a few months on this, but we do ultimately think it works higher over the next two years.
Authors of this answer, directors, partners and/or officers of 5i Research and/or affiliated companies have a financial or other interest in LULU.