Lululemon price target raised to $340 from $304 at BMO Capital

BMO Capital raised the firm’s price target on Lululemon to $340 from $304 but keeps a Market Perform rating on the shares. The company’s better-than-expected result should take shares higher, but questions around the go-forward process of clearing inventory and long-term margins remain, the analyst tells investors in a research note. While Lululemon brand strength will drive meaningful sales growth, the company’s EBIT margins are approaching peak and the stock’s upside may be capped, BMO added.