JPMorgan Securities removed LULU from its analyst focus list
Athletic apparel retailer Lululemon Athletica Inc (NASDAQ:LULU) is down 3.1% before the bell, following a barrage of bear notes. Most notably, JPMorgan Securities cut its rating on LULU to “neutral,” removed it from its analyst focus list, and slashed its price target to $338 from $457. In its bear note, the analyst cited a “category slowdown” and vulnerability to competition.
Elsewhere, Citigroup also downgraded the equity to “neutral” from “buy” and lowered its price objective to $300 from $415, while TD Cowen adjusted to $420 from $447. Coming into today, 19 of 27 covering brokerages rated Lululemon stock a “buy” or better, and the 12-month consensus price target of $391.66 is a 48.4% premium to last night’s close. This leaves room for more downgrades and/or price-target cuts.
After yesterday closing at its lowest mark since July 2022, LULU is once again set to open at more than two-year lows. More recently, following a mid-May bear gap on the charts, the security attempted to rally on the charts, but lost steam in early June just below the $340 level. Should today’s premarket losses hold, Lululemon stock will add to a 46.8% year-to-date deficit.