Lululemon Athletica Inc. had a tough trading day on Thursday, but BofA Securities analyst Lorraine Hutchinson considers it the firm’s top high-quality growth idea among the North American retail stocks they cover,
“Remains highest quality growth story in our coverage. We are forecasting 2Q EPS of $2.51, in line with consensus and guidance, but we see potential upside to both sales and margins. Our 2Q forecast includes sales growth of 15.7 per cent, gross margin expansion of 220 basis points and 220 bp of SG&A deleverage.
“Citi’s economists estimate global GDP growth to be 2.4 per cent for this year, below the 3-per-cent estimated trend, but with downside risks. Despite the desynchronized nature of global growth so far, with the US and EM ex-Asia still stable, China and Europe could weaken further. In fact, Citi’s economists cut their China GDP growth forecast to 4.7 per cent year-over-year for 2023 , which is notably below Beijing’s growth target for this year.
“For energy, the market should not look to China for price support, as its appetite for crude oil and LNG in 2H23 looks likely to moderate compared with 1H23, partly due to high prices, weak domestic macro and the possibility of a mild El Niño winter“In Friday’s Focus Feature, we take a look at how Canadian businesses are faring amid the dual stresses of high inflation and interest rates.
The accompanying chart shows above-trend margins for finance and insurance, oil and gas extraction, retail trade, wholesale trade, transportation and warehousing. Weaker margins are found in real estate rental and leasing.
South Africa South Africa Latest News, South Africa South Africa Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Source: AutoNewsCanada - 🏆 77. / 51 Read more »