Lululemon upgraded to Buy at Needham amid recovery in demand

Needham upgraded Lululemon (LULU) to Buy from Hold with a $475 price target The stock was a laggard in 2024, with shares down 25% due to slowing sales trends in the U.S., but the firm’s checks suggest a strong recovery of demand in December, suggesting that the U.S. could potentially accelerate this quarter, the analyst tells investors in a research note. Lululemon also guided Q4 very conservatively due to the compressed Holiday season, which allows for upside to numbers, the firm added.