Morgan Stanley Issues Pessimistic Forecast for lululemon athletica (NASDAQ:LULU) Stock Price

Key Points

• Morgan Stanley lowered lululemon’s price target from $93 to $83 and maintained an “underweight” rating, implying 17.39% downside from the stock’s current price.
• Analyst sentiment has broadly weakened, with Truist downgrading the stock to “sell” and several firms cutting price targets. MarketBeat data shows a consensus “Reduce” rating and an average price target of $141.54.
• Lululemon’s shares fell to $100.47 after quarterly results showed revenue down 4.3% year over year and below estimates, while the company cut fiscal 2026 revenue and earnings guidance amid declining comparable sales.

lululemon athletica (NASDAQ:LULU - Get Free Report) had its target price lowered by research analysts at Morgan Stanley from $93.00 to $83.00 in a report issued on Friday, Benzinga reports. The firm currently has an "underweight" rating on the apparel retailer's stock. Morgan Stanley's price target points to a potential downside of 17.39% from the stock's current price.

LULU has been the subject of a number of other research reports. Guggenheim restated a "neutral" rating on shares of lululemon athletica in a research report on Friday. Truist Financial lowered shares of lululemon athletica from a "hold" rating to a "sell" rating and lowered their price objective for the company from $115.00 to $94.00 in a research note on Thursday, July 16th. BTIG Research reissued a "neutral" rating on shares of lululemon athletica in a report on Friday. Telsey Advisory Group reduced their price objective on lululemon athletica from $122.00 to $110.00 and set a "market perform" rating for the company in a research note on Friday. Finally, Weiss Ratings downgraded shares of lululemon athletica from a "sell (d+)" rating to a "sell (d)" rating in a research report on Monday, August 24th. One investment analyst has rated the stock with a Strong Buy rating, one has assigned a Buy rating, twenty-five have issued a Hold rating and five have assigned a Sell rating to the company. According to data from MarketBeat.com, the stock currently has a consensus rating of "Reduce" and a consensus price target of $141.54.

lululemon athletica Stock Performance

Shares of NASDAQ:LULU traded down $21.30 during trading on Friday, hitting $100.47. The company's stock had a trading volume of 25,786,812 shares, compared to its average volume of 3,343,988. lululemon athletica has a fifty-two week low of $97.99 and a fifty-two week high of $225.98. The stock's 50-day moving average price is $118.76 and its two-hundred day moving average price is $136.61. The company has a market capitalization of $11.92 billion, a PE ratio of 8.09, a PEG ratio of 2.50 and a beta of 0.87.

lululemon athletica (NASDAQ:LULU - Get Free Report) last posted its quarterly earnings data on Thursday, September 3rd. The apparel retailer reported $2.92 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.79 by $1.13. The company had revenue of $2.42 billion for the quarter, compared to the consensus estimate of $2.46 billion. lululemon athletica had a return on equity of 31.26% and a net margin of 13.03%.lululemon athletica's revenue for the quarter was down 4.3% compared to the same quarter last year. During the same period in the previous year, the business earned $3.10 EPS. lululemon athletica has set its FY 2026 guidance at 9.480-9.730 EPS and its Q3 2026 guidance at 0.930-0.980 EPS. On average, equities analysts predict that lululemon athletica will post 10.93 earnings per share for the current fiscal year.

Insider Transactions at lululemon athletica

In related news, Director Charles Bergh purchased 4,275 shares of the stock in a transaction on Monday, June 15th. The shares were bought at an average price of $117.05 per share, for a total transaction of $500,388.75. Following the completion of the acquisition, the director directly owned 10,365 shares in the company, valued at approximately $1,213,223.25. This trade represents a 70.20% increase in their position. The purchase was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this hyperlink. 0.54% of the stock is owned by insiders.

Institutional Investors Weigh In On lululemon athletica

Several hedge funds and other institutional investors have recently made changes to their positions in the business. NorthRock Partners LLC grew its stake in shares of lululemon athletica by 4.2% in the third quarter. NorthRock Partners LLC now owns 1,553 shares of the apparel retailer's stock worth $276,000 after acquiring an additional 62 shares during the last quarter. Murphy & Mullick Capital Management Corp lifted its holdings in shares of lululemon athletica by 4.3% during the first quarter. Murphy & Mullick Capital Management Corp now owns 1,578 shares of the apparel retailer's stock valued at $242,000 after acquiring an additional 65 shares during the period. IHT Wealth Management LLC boosted its position in lululemon athletica by 1.7% in the second quarter. IHT Wealth Management LLC now owns 4,276 shares of the apparel retailer's stock valued at $1,016,000 after buying an additional 73 shares in the last quarter. GW&K Investment Management LLC grew its position in lululemon athletica by 70.3% during the 4th quarter. GW&K Investment Management LLC now owns 189 shares of the apparel retailer's stock worth $39,000 after acquiring an additional 78 shares during the last quarter. Finally, Golden State Wealth Management LLC grew its holdings in shares of lululemon athletica by 43.6% during the fourth quarter. Golden State Wealth Management LLC now owns 280 shares of the apparel retailer's stock worth $58,000 after purchasing an additional 85 shares during the last quarter. 85.20% of the stock is owned by institutional investors and hedge funds.

Key Stories Impacting lululemon athletica

Here are the key news stories impacting lululemon athletica this week:

• Positive Sentiment: Second-quarter diluted EPS of $2.92 exceeded the $1.79 consensus estimate. However, the result included approximately $134.5 million in tariff refunds, which contributed about $0.86 per share, making the beat less indicative of underlying profitability. lululemon Second Quarter Fiscal 2026 Results
• Positive Sentiment: The company repurchased 2.7 million shares for $330 million during the quarter. Investor Michael Burry also indicated continued confidence in LULU below $100, potentially providing a limited counterpoint to the broader selling pressure. Michael Burry on Lululemon
• Neutral Sentiment: Analysts broadly moved to a more cautious stance. Wells Fargo, JPMorgan, UBS, Baird, Telsey and Bernstein lowered price targets, while ratings generally remained neutral, equal weight, hold or market perform. Some revised targets still imply upside from current levels.
• Negative Sentiment: Revenue fell 4% year over year to $2.416 billion, below the $2.46 billion consensus, while comparable sales declined 9% overall and 10% on a constant-currency basis. Americas revenue dropped 8%, and China revenue also declined, signaling that international growth is no longer fully offsetting weakness in the core market. Lululemon forecast cut and CEO challenge
• Negative Sentiment: lululemon cut fiscal 2026 revenue guidance to $10.35 billion-$10.50 billion from $11.00 billion-$11.15 billion and reduced EPS guidance to $9.48-$9.73. Third-quarter revenue and EPS guidance also fell well below Wall Street expectations, raising concerns about product acceptance, store traffic, margins and competitive pressure. LULU Q2 earnings call takeaways

lululemon athletica Company Profile

lululemon athletica inc. is a design-focused athletic apparel company known for performance-oriented apparel, footwear and accessories. The company's product portfolio centers on technical apparel for yoga, running, training and everyday active lifestyle use and includes tops, bottoms, outerwear, underwear, bags and a growing footwear assortment. lululemon emphasizes fabric science and product innovation, marketing garments that blend performance features with lifestyle styling.

Products are developed in-house and produced through a network of third-party manufacturers.

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