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Lululemon Rockets On China Tailwinds, Risk-Reward Looks Juicy
Benzingaยท 2025-10-17 17:07
Core Viewpoint - Lululemon Athletica Inc. is preparing for a comeback with product revamps and maintaining global momentum, aiming for improvements by 2026 [1][3]. Group 1: Analyst Insights - BTIG analyst Janine Stichter reiterated a Buy rating on Lululemon with a price forecast of $303, following a meeting with the company's leadership [1]. - Stichter views Lululemon as being in the "show me" camp, indicating a need for more precise execution before fully endorsing the stock [2]. Group 2: Product and Operational Changes - Product enhancements are delayed until spring 2026, leading to a lack of near-term catalysts; however, the company is expected to improve under new creative direction [3]. - Organizational changes are being implemented to enhance excitement and agility in product assortments [4]. Group 3: Market Conditions and Growth Potential - Stichter believes that while competition is a factor, it is not the primary headwind; markdown pressure is expected to ease in 2026 [5]. - China is highlighted as a continued growth engine, with international momentum providing support against domestic challenges [6]. Group 4: Current Market Performance - Lululemon shares are currently trading higher by 0.62% at $165.66 [6].