Lululemon price target lowered to $470 from $525 at Piper Sandler

Piper Sandler lowered the firm’s price target on Lululemon to $470 from $525 and keeps an Overweight rating on the shares. The firm continues to like Lululemon’s positioning within performance, but is taking a more conservative approach to North America growth given signs of a fickle teen “fashion” consumer and tough teen customer acquisition compares. Lululemon saw tremendous teen customer acquisition in 2022 and 2023, underpinned by the percentage of females teens citing Lululemon as a “new brand” that they are wearing, but as this percentage has come down in the Spring, Piper thinks customer acquisition will decelerate. Nonetheless, the firm believes the recent selloff is overdone.