Lululemon price target lowered to $325 from $350 at Raymond James

Raymond James analyst Rick Patel lowered the firm’s price target on Lululemon to $325 from $350 and keeps an Outperform rating on the shares. Lululemon missed Q2 revenue expectations and cut guidance for FY24 as the product challenges the firm was concerned about “were worse than expected.” However, while disappointing, the firm thinks the resetting of expectations “creates a more favorable setup” and argues that the company’s challenges are not about traffic, which would suggest a negative impact from competition, but about conversion in the U.S. for women’s.