Morgan Stanley Cuts lululemon athletica (NASDAQ:LULU) Price Target to $185.00

Key Points

• Morgan Stanley has reduced lululemon athletica's price target from $223.00 to $185.00, maintaining an "equal weight" rating on the stock, indicating a potential upside of 3.62% from its current price.
• Multiple research firms have recently downgraded lululemon, with Zacks Research moving from a "hold" to a "strong sell" rating and Truist Financial lowering its rating from "buy" to "hold" with a $170.00 price target.
• Despite the downgrades, lululemon reported a 6.5% year-over-year revenue increase in its latest quarter, exceeding earnings expectations with an EPS of $3.10 compared to analyst estimates of $2.86.

lululemon athletica (NASDAQ:LULU - Get Free Report) had its target price cut by analysts at Morgan Stanley from $223.00 to $185.00 in a research note issued to investors on Tuesday,Benzinga reports. The brokerage currently has an "equal weight" rating on the apparel retailer's stock. Morgan Stanley's price target indicates a potential upside of 3.62% from the company's current price.

A number of other research firms have also issued reports on LULU. Zacks Research lowered lululemon athletica from a "hold" rating to a "strong sell" rating in a research report on Monday, September 8th. Truist Financial cut lululemon athletica from a "buy" rating to a "hold" rating and set a $170.00 price target on the stock. in a research report on Friday, September 5th. Hsbc Global Res downgraded shares of lululemon athletica from a "strong-buy" rating to a "hold" rating in a report on Thursday, September 11th. BMO Capital Markets decreased their price objective on shares of lululemon athletica from $302.00 to $250.00 and set a "market perform" rating on the stock in a research report on Friday, June 6th. Finally, Wells Fargo & Company cut their target price on shares of lululemon athletica from $205.00 to $160.00 and set an "equal weight" rating for the company in a research report on Friday, September 5th. One analyst has rated the stock with a Strong Buy rating, four have given a Buy rating, twenty-six have given a Hold rating and three have issued a Sell rating to the company. According to data from MarketBeat.com, the company presently has an average rating of "Hold" and an average price target of $233.33.

lululemon athletica Stock Performance

Shares of NASDAQ LULU opened at $178.54 on Tuesday. The stock has a 50 day moving average price of $191.18 and a 200 day moving average price of $245.02. The firm has a market capitalization of $21.17 billion, a price-to-earnings ratio of 12.08, a PEG ratio of 11.01 and a beta of 1.12. lululemon athletica has a 52-week low of $159.25 and a 52-week high of $423.32.

lululemon athletica (NASDAQ:LULU - Get Free Report) last released its earnings results on Thursday, September 4th. The apparel retailer reported $3.10 EPS for the quarter, topping analysts' consensus estimates of $2.86 by $0.24. The company had revenue of $2.53 billion during the quarter, compared to analysts' expectations of $2.55 billion. lululemon athletica had a net margin of 16.38% and a return on equity of 42.05%. lululemon athletica's revenue for the quarter was up 6.5% on a year-over-year basis. During the same period last year, the business earned $3.15 EPS. lululemon athletica has set its FY 2025 guidance at 12.770-12.970 EPS. Q3 2025 guidance at 2.180-2.230 EPS. Analysts forecast that lululemon athletica will post 14.36 earnings per share for the current year.

Hedge Funds Weigh In On lululemon athletica

Several institutional investors and hedge funds have recently added to or reduced their stakes in LULU. Norges Bank bought a new position in lululemon athletica in the 2nd quarter worth approximately $217,344,000. T. Rowe Price Investment Management Inc. grew its position in lululemon athletica by 151.6% in the first quarter. T. Rowe Price Investment Management Inc. now owns 770,336 shares of the apparel retailer's stock worth $218,052,000 after acquiring an additional 464,186 shares in the last quarter. Nuveen LLC purchased a new position in lululemon athletica in the first quarter worth about $123,894,000. Geode Capital Management LLC increased its stake in lululemon athletica by 16.2% during the second quarter. Geode Capital Management LLC now owns 2,960,387 shares of the apparel retailer's stock worth $700,502,000 after acquiring an additional 413,062 shares during the last quarter. Finally, Alliancebernstein L.P. boosted its holdings in shares of lululemon athletica by 9.0% in the 1st quarter. Alliancebernstein L.P. now owns 4,792,294 shares of the apparel retailer's stock worth $1,356,507,000 after purchasing an additional 394,706 shares during the period. 85.20% of the stock is currently owned by institutional investors and hedge funds.

About lululemon athletica

Lululemon Athletica Inc, together with its subsidiaries, designs, distributes, and retails athletic apparel, footwear, and accessories under the lululemon brand for women and men. It offers pants, shorts, tops, and jackets for healthy lifestyle, such as yoga, running, training, and other activities. It also provides fitness-inspired accessories.

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