Recent Changes Are Transforming Lululemon's Narrative
Written by Emily J. Thompson, Senior Investment Analyst
Source: Yahoo Finance
Updated: Oct 26 20250mins
Analyst Sentiment: Lululemon athletica's Fair Value Estimate has been slightly reduced to $194.36 per share, reflecting a more cautious outlook among analysts, with mixed sentiments regarding the company's near-term recovery and growth prospects.
Bullish Perspectives: Some analysts, like BofA and TD Cowen, maintain positive ratings and see long-term growth potential despite lowering price targets, citing Lululemon's strong margins and historical execution as supportive factors.
Bearish Concerns: Other analysts, including Bernstein and Jefferies, have downgraded their ratings and price targets, expressing skepticism about the company's growth strategies and highlighting significant risks related to competition and market conditions.
Company Updates: Lululemon has updated its 2025 outlook, projecting modest revenue growth and earnings per share, while also engaging in share repurchases and securing a new credit facility to enhance capital flexibility amidst ongoing challenges.
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Analyst Views on LULU
Wall Street analysts forecast LULU stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for LULU is 193.95 USD with a low forecast of 120.00 USD and a high forecast of 350.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
25 Analyst Rating
2 Buy
22 Hold
1 Sell
Hold
Current: 183.600
Low
120.00
Averages
193.95
High
350.00
Current: 183.600
Low
120.00
Averages
193.95
High
350.00
Goldman Sachs
Brooke Roach
Neutral
downgrade
$200 -> $180
2025-11-18
Reason
Goldman Sachs
Brooke Roach
Price Target
$200 -> $180
2025-11-18
downgrade
Neutral
Reason
Goldman Sachs analyst Brooke Roach lowered the firm's price target on Lululemon to $180 from $200 and keeps a Neutral rating on the shares. Trends at Lululemon remain mixed, and while Goldman is encouraged by stronger store traffic in October, improving consumer sentiment for the brand and key franchises on social media, and tailwinds from the company's new Amex Platinum partnership, the firm's brand trackers have worsened and promotionality is meaningfully increasing in breadth, the analyst tells investors in a research note.
UBS
Jay Sole
Neutral
downgrade
$185 -> $183
2025-11-17
Reason
UBS
Jay Sole
Price Target
$185 -> $183
2025-11-17
downgrade
Neutral
Reason
UBS analyst Jay Sole lowered the firm's price target on Lululemon to $183 from $185 and keeps a Neutral rating on the shares. The firm believes Lululemon had soft U.S. sales momentum through November month-to-date and sees a balanced upside/downside skew into the Q3 earnings report, the analyst tells investors in a research note. UBS sees weaker than expected trends in the U.S., driving the company to lower its EPS guidance to $12.70-$12.78 for FY25.
BNP Paribas Exane
Underperform -> Neutral
upgrade
$146
2025-10-20
Reason
BNP Paribas Exane
Price Target
$146
2025-10-20
upgrade
Underperform -> Neutral
Reason
BNP Paribas Exane upgraded Lululemon to Neutral from Underperform with a $146 price target.
BNP Paribas Exane
Underperform
to
Neutral
upgrade
$146
2025-10-20
Reason
BNP Paribas Exane
Price Target
$146
2025-10-20
upgrade
Underperform
to
Neutral
Reason
As previously reported, BNP Paribas Exane upgraded Lululemon to Neutral from Underperform with a $146 price target. With the shares down about 65% since the firm downgraded shares last February, the firm says the current valuation is "pricing in a lot of bad news" but the negative catalysts from here are "less clear." Meanwhile, the AmEx (AXP) Platinum partnership could be a positive catalyst and founder-led activism "could come into play," the analyst tells investors.
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About LULU
lululemon athletica inc. is a technical athletic apparel, footwear, and accessories company. The Company organizes its operations into four regional markets: the Americas, China Mainland, Asia Pacific (APAC), and Europe and the Middle East (EMEA). It conducts its business through a number of different channels in each market, including the Company-operated stores, e-commerce, temporary locations, wholesale, outlets, a re-commerce program, and license and supply arrangements. The Company offers a comprehensive line of technical athletic apparel, footwear, and accessories marketed under the lululemon brand. Its apparel assortment includes items such as shorts, tops, and jackets designed for a healthy lifestyle, including athletic activities such as yoga, running, training, and most other activities. It also offers apparel designed for being on the move and fitness-inspired accessories. It operates stores in the United States, Canada, China Mainland, Australia, South Korea and others.
About the author
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Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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