Lululemon downgraded to Hold from Buy at HSBC

HSBC downgraded Lululemon to Hold from Buy with an unchanged price target of $500. The analyst believes the sporting goods sector could share some similarities with luxury in that the first half of 2024 could be challenging. It will be the second half of 2024 at the earliest before some improvements on the back of several positive catalysts like sports events and leaner inventory situation, the analyst tells investors in a research note. HSBC cites valuation for the downgrade of Lululemon. The stock had a fantastic run in 2023 and the current valuation does not look compelling in the context of impending moderation of growth, the firm says.