Lululemon price target lowered to $430 from $475 at Needham

Needham lowered the firm’s price target on Lululemon (LULU) to $430 from $475 and keeps a Buy rating on the shares ahead of its Q4 results. Despite concerns about a post-holiday lull, trends have improved for the company in recent weeks, the analyst tells investors in a research note, also stating that if demand is improving as the weather is warming, that is a sign that management’s strategy is bearing fruit. Needham adds that while risk-reward is positive into the print, its reduced price target reflects a lower earnings multiple of 25-times vs. 28-times prior.