JPMorgan cuts Lululemon target, removes from Analyst Focus List

JPMorgan lowered the firm’s price target on Lululemon to $338 from $457 and keeps an Overweight rating on the shares. The firm also removed the shares from its Analyst Focus List. Based on recent fieldwork, Lululemon has paused sales on the recently launched Breezethrough collection, with management citing “an intent to make design adjustments necessary based on guest feedback” to deliver an improved product experience.” The firm says Breezethrough represented the first of two innovations in the women’s leggings category management expected to support improved revenue growth through the second half of 2024, with the second innovation planned later in the year and another new type of legging within the train assortment. The firm says the pause compounds Lululemon’s execution risk. It cut second half of 2024 estimates.