Lululemon price target lowered to $329 from $404 at Morgan Stanley

Morgan Stanley analyst Alex Straton lowered the firm’s price target on Lululemon to $329 from $404 and keeps an Overweight rating on the shares. The firm sees room for a Q2 EPS beat and fiscal year guidance raise, but on “potentially lower-quality drivers,” the analyst tells investors in a preview. If this is the case, the analyst does not think the print will resolve any bigger picture debates, leaving Lululemon a “show-me” story in near-term, but the firm also sees a “potentially compelling” second half rate-of-change story and “still-compelling positioning” against “seemingly overly bearish sentiment,” the analyst added.