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Fly News Breaks for February 6, 2018
RL, GPS, LULU
Feb 6, 2018 | 07:52 EDT
After lululemon (LULU) announced Laurent Potdevin has resigned as CEO after he "fell short" of the company's standards of conduct, Morgan Stanley analyst Kimberly Greenberger said it is likely that investors will speculate the top two contenders for the job are Glenn Murphy, the company's co-Chairman of the board and ex-CEO of The Gap (GPS), and Stefan Larsson, the ex-CEO Ralph Lauren (RL). If lululemon picks either of the two to replace Potdevin, Greenberger would expect the stock to react positively, she tells investors. The analyst keeps an Equal Weight rating and $73 price target on lululemon, which is down about 3% to $75 per share in pre-market trading.
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