Lululemon price target raised to $355 from $300 at Evercore ISI

Evercore ISI raised the firm’s price target on Lululemon (LULU) to $355 from $300 and keeps an Outperform rating on the shares. The firm doesn’t see “obvious sources” of near-term upside and forecasts Q3 and Q4 EPS within the company’s guidance ranges, the analyst tells investors in a preview. With that said, the firm believes that in 2025 Alo plans to distance its brand from Athleisure/Yoga altogether, and to reposition itself as a full-blown luxury brand with minimal innovation in Athleisure going forward and thinks bulls will be able to argue more easily for multiple expansion if a combination of better product from the new design team, cycling belt bag, and less direct pressure from peers like Alo can translate to Americas returning to 3%-4%-like same-store sales growth in 2025.