Lululemon Downgraded: Goldman Analyst Flags Competitive Pressures, Weak Innovation, Lower Traffic
Portfolio Pulse from Nabaparna Bhattacharya
Goldman Sachs analyst Brooke Roach downgraded Lululemon Athletica Inc. (NASDAQ:LULU) from Buy to Neutral, lowering the price target from $463 to $286 due to competitive pressures, weak innovation, and declining store traffic. The analyst highlights execution challenges, increased promotional activity, and underperformance in online traffic as key concerns.
August 02, 2024 | 5:10 pm
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Goldman Sachs downgraded Lululemon Athletica Inc. to Neutral from Buy, lowering the price target from $463 to $286. The downgrade is due to competitive pressures, weak innovation, and declining store traffic. The analyst also noted increased promotional activity and underperformance in online traffic.
The downgrade from Buy to Neutral and the significant reduction in the price target from $463 to $286 are strong negative signals. The analyst's concerns about competitive pressures, weak innovation, and declining store traffic are likely to weigh on investor sentiment. The immediate 5.27% drop in share price reflects the market's reaction to these concerns.
CONFIDENCE 95
IMPORTANCE 90
RELEVANCE 100