Lululemon assumed with a Neutral at Piper Sandler

Piper Sandler assumed coverage of Lululemon with a Neutral rating and $250 price target. The shares have been cut in half year-to-date, with the buy-side pricing in negative revisions ahead, the analyst tells investors in a research note. The firm sees low earnings visibility for Lululemon and says the combination of maturation of the U.S. with well capitalized competitors “on the offense” is making new customer acquisition and retention “that much more expensive and slowing consumer is unprecedented and difficult to forecast.”