Lululemon price target lowered to $324 from $400 at Wedbush

Wedbush lowered the firm’s price target on Lululemon to $324 from $400 and keeps an Outperform rating on the shares. After years of exceptionally strong performance, Lululemon has hit unexpected turbulence in 2024, which was exacerbated by last month’s product-quality issues with their new “Breeze Through” leggings line, the firm says. Considering that they had to pull the products from shelves, Wedbush believes this will lead downward-revised guidance when it reports Q2 EPS after the close on Thursday. That said, with shares down almost 50% year-to-date, the firm thinks that a cut is pretty much baked into buyside expectations at the moment.