Lululemon and American Eagle Upgraded, Schlumberger Drops on Oil

Lululemon (LULU) and American Eagle (AEO) upgraded while Schlumberger (SLB) revised lower in Tuesday's Analysts' Actions. Lululemon was upgraded to OUTPERFORM from MARKET PERFORM at Wells Fargo. Its price target range was also stretched to $50-54 from $38-42. Wells Fargo says merchandise margins appear to be at a turning point and believes the company’s ‘underlying growth story will come into greater focus.’ American Eagle was upgraded at Oppenheimer to OUTPERFORM from MARKET PERFORM. The firm says it recognizes the teen space is still challenging but thinks ‘American Eagle is ahead of the curve by cutting back’ and investors should see savings from store closures. Oppenheimer also thinks stock ‘buyback could be realistic.’ The price target was bumped to $14 from $12. A downgrade for Schlumberger to HOLD from BUY at Jefferies. The price target was lowered to $90 from $119 on lower oil prices. The firm said it remains 'concerned about longer-term deepwater development in light of oil prices versus cost structure.'