Lululemon price target lowered to $314 from $326 at Morgan Stanley

Morgan Stanley lowered the firm’s price target on Lululemon to $314 from $326 and keeps an Overweight rating on the shares. In advance of Lululemon’s upcoming China investor event next week, the firm conducted a deeper dive into the business’ positioning and potential growth opportunity in the region and came away seeing “nearly unprecedented success in the region,” which it sees as a function of the company’s thoughtful, methodical entry and relevant positioning. However, while “impressive,” the work also shows China and international forward expectations may be too high, leading the firm to trim medium-term estimates, the analyst tells investors.