NEW YORK (TheStreet) -- Shares of Lululemon Athletica Inc. (LULU) are up 4.54% to $43.28 in pre-market trade after it was reported that advisers to company founder Dennis "Chip" Wilson have been speaking with private equity firms, including Leonard Green & Partners, about taking the yoga gear maker private, sources told the Wall Street Journal.
No deal is happening now, and buyout industry insiders said such a transaction would face significant hurdles, given the premium that would be required atop the company's $6 billion market capitalization, the Journal added.
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 good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, disappointing return on equity and a generally disappointing performance in the stock itself."