Lululemon removed from Conviction Buy list at Goldman on tough comps

Goldman Sachs analyst Brooke Roach is removing Lululemon from the firm’s Conviction Buy list, but keeps a Buy rating on the shares with a price target of $431, up from $383, after update FY22, FY23, and FY24 EPS estimates following the company’s Q3 EPS beat. Roach still views Lululemon as "a structural share gainer with ongoing broad-based momentum and several levers for long-term growth," but acknowledges it has been a notable comp outperformer in 2022 on the back of what she sees as "a record year of innovation and traffic-driving product." She believes that cycling the tough traffic-driving compares of 2022 may lead to a slower rate of year-over-year comp growth.