Oppenheimer positive on Lululemon

|About: Lululemon Athletica Inc. (LULU)|By:, SA News Editor

A fresh note from Oppenheimer on Lululemon (LULU +2.8%) indicates investors may have overreacted to speculation on markdown and clearance activity at the retailer.

Channel checks from the firm show clearance items are limited to one or two racks per store.

"With shares down substantially from August highs, we believe buy-side expectations embedding both sales and margin miss; comps in line with MSD guide; and still potential for better margins sufficient at these levels," writes analyst Anna Andreeva.

Oppy keeps an Outperform rating on LULU and slides its price target to $70.