Lululemon Analyst Says Mirror Acquisition Is A Win-Win

Sanju Swamy

Wed, Aug 12, 2020, 4:36 PM1 min read

In this article:

Lululemon’s (NASDAQ: LULU) acquisition of Mirror is mutually beneficial for both companies, according to Raymond James.

The Lulumeon Analyst: Matthew McClintock reiterated a Strong Buy rating on Lululemon.

The Lululemon Thesis: McClintock estimated that Mirror has the potential to reach $2.5 billion in revenue and contribute an additional 50 cents to Lululemon's EPS by 2023.

The analyst named the following as growth drivers:

Mirror’s partnership with Lululemon creates a potential distribution advantage over other fitness brands.
Mirror could reach over 2 million subscribers by 2023.
Mirror’s customer acquisition costs will be lower considering the traffic levels in Lululemon’s physical shops.
Mirror expands Lulu’s reach to a larger digital platform that has been intensified by the pandemic and the need for an at-home fitness device market.

To that end, “Mirror is perfectly positioned to capture more than its fair share,” McClintock said.

LULU Price Action: Lululemon shares ended Wednesday's session 2.97% higher at $345.33.

Public domain photo via Wikimedia.

Latest Ratings for LULU

Jul 2020	BTIG	Maintains	Buy
Jul 2020	Baird	Maintains	Outperform
Jun 2020	UBS	Maintains	Neutral

View More Analyst Ratings for LULU
View the Latest Analyst Ratings

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Lululemon Analyst Says Mirror Acquisition Is A Win-Win

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