Lululemon price target raised to $360 from $345 at Wells Fargo

Wells Fargo analyst Ike Boruchow raised the firm’s price target on Lululemon to $360 from $345 and keeps an Equal Weight rating on the shares. While Q3 showed a solid beat on the top-line and management has seen momentum QTD, Lululemon also saw a gross margin, with inventories at the +85% level, Boruchow tells investors in a research note. Gross margin volatility is likely to cloud some of the margin recapture bull case looking ahead to FY23 despite still impressive fundamentals, the analyst adds.