Lululemon price target lowered to $490 from $539 at Morgan Stanley

Morgan Stanley lowered the firm’s price target on Lululemon to $490 from $539 and keeps an Overweight rating on the shares. The company’s “underwhelming” Q4 results for North America, “disappointing” Q1 and fiscal year topline guidance and “cautious” quarter-to-date consumer commentary “fueled the bear narrative,” the analyst tells investors. However, the firm thinks the Q1 and fiscal year guidance will “prove beat-able” and still sees Lululemon having a “best-in-class financial profile,” the analyst added.