Lululemon price target lowered to $500 from $525 at Needham

Needham lowered the firm’s price target on Lululemon to $500 from $525 but keeps a Buy rating on the shares. While the company’s Q4 results beat on top and bottom line, it’s quarter-to-date demand in U.S. markets looks “choppy”, as the management attributes lack of color/smaller sizes to softer trends, the analyst tells investors in a research note. The bears will view choppiness as a sign that competition is catching up, while to the bulls, the issues are fixable as response to innovation remains strong, the firm states, adding that FY24 performance for Lululemon now looks de-risked.