Lululemon price target lowered to $302 from $313 at BMO Capital

BMO Capital analyst Simeon Siegel lowered the firm’s price target on Lululemon (LULU) to $302 from $313 and keeps a Market Perform rating on the shares. The company reported a top- and bottom-line earnings beat with U.S. sales that grew slightly on 52-week basis and better gross margins driven by better product margin and lower markdowns, but the management guided Q1 and FY25 below consensus, the analyst tells investors in a research note. The firm continues to see Lululemon as a “strong but overstretched” brand, BMO states, adding that it is also worried about long-term domestic business and women’s revenue sizing as the brand continues to work on stretching further.