Lululemon price target lowered to $422 from $447 at Deutsche Bank

Deutsche Bank analyst Gabriella Carbone lowered the firm’s price target on Lululemon to $422 from $447 and keeps a Buy rating on the shares after meeting with management. While it is clear that the revised margin guidance was disappointing, the brand continues to resonate well with consumers as holiday traffic was strong both in stores and online, Carbone tells investors in a research note. The analyst believes the investor debate on Lululemon will likely continue as inventory levels remain elevated, leading to concerns around the potential for further markdown activity over the next few quarters.