Lululemon Athletica Inc. (NASDAQ:LULU) shares are trading higher Friday as the stock attempts to recover some of the week's losses following a slew of price target reductions from analysts.
The Details:
Lululemon shares fell 9% Thursday as investors digested a slew of analysts' downgrades and price reductions.
Notably, Citigroup downgraded Lululemon from Buy to Neutral and lowered the price target from $415 to $300, and JPMorgan analyst Matthew R. Boss slashed his price target from $457 to $338 and removed the stock from his Analyst Focus List.
Boss pointed to paused sales of the company's newly launched Breezethrough collection as a significant "execution concern." The Breezethrough line was expected to drive growth in Lululemon's women's leggings category through the second half of 2024.
Several other analysts updated coverage on Lululemon this week:
- Truist Securities maintained a Buy rating and lowered its price target from $415 to $310.
- TD Cowen analyst John Kernan maintained Lululemon with a Buy, but lowered the price target from $447 to $420.
- Jefferies reiterated its Underperform rating and $220 price target on the stock.
Lululemon's most recent earnings report included lower-than-expected revenue growth and cautious guidance for the upcoming quarters. According to data from Benzinga Pro, Lululemon will report its second-quarter results towards the end of August with an exact date not yet confirmed.
Is LULU A Good Stock To Buy?
An investor or trader's decision to buy or sell a stock is unique to their time horizon and risk tolerance. Many typical investors evaluate earnings growth and valuation on a particular stock before making a decision.
There are many different valuation metrics that may help you make a decision. Find more on Lululemon Athletica's quote page, or if you'd like a deeper dive in an advanced program, try Benzinga PRO for free.
LULU Price Action: According to Benzinga Pro, Lululemon Athletica shares are up 3.7% at $256.48 at the time of publication Friday.
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Image: Courtesy of Lululemon Athletica, Inc.