Lululemon price target lowered to $373 from $411 at Morgan Stanley

Morgan Stanley lowered the firm’s price target on Lululemon (LULU) to $373 from $411 and keeps an Overweight rating on the shares. Q4 results and below-consensus initial fiscal year guidance mean the U.S. and North American debate “likely lingers for at least” the next twelve months, if not longer, the analyst tells investors. Current U.S. and North American growth trends fuel the thesis that Lulu’s valuation should gravitate towards lower-quality specialty retail levels, but the firm views higher profitability, positive EPS revision potential and relative macro resiliency as reasons to remain Overweight, the analyst added.