Lululemon price target lowered to $270 from $300 at Citi

Citi analyst Paul Lejuez lowered the firm’s price target on Lululemon to $270 from $300 and keeps a Neutral rating on the shares ahead of the Q2 report on August 29. The analyst anticipates Q2 earnings relatively in-line with consensus and says the focus will be on the recent pulling of the highly anticipated Breezethrough legging launch from stores and its impact on sales and margins in the second half of 2024. The firm says investors widely anticipate Lululemon will lower fiscal 2024 guidance. Citi remains cautious on the shares near term, but acknowledges investor sentiment is very negative and expectations are low, suggesting a balanced risk/reward into the print.