NEW YORK (TheStreet) -- Shares of Lululemon Athletica Inc. (LULU) are up 1.71% to $45.76 as the Vancouver-based technical athletic apparel company reportedly could be a takeover target, according to industry speculation, the Globe and Mail reports.
Analysts suggest that VF Corp. (VFC), which owns more than 30 brands such as North Face and 7 for all Mankind, could be a prime suitor.
Industry sources familiar with Lululemon said it's not for sale and it's not involved in talks to divest the company, the Globe and Mail noted.
TheStreet Ratings team rates LULULEMON ATHLETICA INC as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:
"We rate LULULEMON ATHLETICA INC (LULU) a HOLD. The primary factors that have impacted our rating are mixed some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures and expanding profit margins. However, as a counter to these strengths, we find that the stock has had a generally disappointing performance in the past year."