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Analyst: Lululemon Stock Faces a "Category Slowdown"
LULUlululemon(LULU) Schaeffers Investment Research·2024-07-25 13:19

Core Viewpoint - Lululemon Athletica Inc is experiencing significant downward pressure on its stock price due to multiple downgrades from major brokerages, indicating a potential slowdown in the athletic apparel market and increased competition [1][2]. Group 1: Analyst Ratings and Price Targets - JPMorgan Securities downgraded Lululemon to "neutral," removed it from its analyst focus list, and reduced its price target from 457to457 to 338, citing a "category slowdown" and competition vulnerability [1]. - Citigroup also downgraded Lululemon from "buy" to "neutral," lowering its price target from 415to415 to 300 [1]. - TD Cowen adjusted its price target from 447to447 to 420 [1]. - Currently, 19 out of 27 brokerages rate Lululemon stock as "buy" or better, with a 12-month consensus price target of 391.66,representinga48.4391.66, representing a 48.4% premium over the last closing price [1]. Group 2: Stock Performance - Lululemon's stock is set to open at more than two-year lows, following a significant decline that has seen it close at its lowest mark since July 2022 [2]. - The stock attempted to rally after a mid-May bear gap but lost momentum in early June just below the 340 level [2]. - If premarket losses persist, Lululemon will add to a year-to-date deficit of 46.8% [2].