Lululemon price target raised to $410 from $380 at BofA

BofA analyst Lorraine Hutchinson raised the firm’s price target on Lululemon to $410 from $380 and keeps a Buy rating on the shares following the company’s Q4 report, arguing that Q1 sales guidance "should erase doubts and lead to multiple expansion. Q1 inventory growth will likely moderate to 30-35%, not as a result of clearance or promotions but rather lower receipts as the company works through core basics on hand now that lead times have normalized, said the firm, which adds that this "should take the wind out of the sails of the bear case, which contemplated heavy promotions/markdowns to fix the inventory overage."