Lululemon selloff presents buying opportunity, says Argus

Argus analyst John Staszak keeps his Buy rating and $415 price target on Lululemon but notes that the selloff in the stock presents a buying opportunity. The company has a strong brand and growing direct-to-consumer sales, which should lead to higher margins over the next several years, the analyst tells investors in a research note. Staszak adds that while Lululemon’s inventory rose 85% in Q3, its management believes the company is well positioned to meet FY24 demand.