Piper Sandler Cuts Lululemon (LULU) Price Target to $200 on Growing Competition

Lululemon Athletica, Inc. (NASDAQ:LULU) is one of the best falling stocks to buy now. On July 24, Evercore ISI lowered its price target for Lululemon Athletica from $320 to $265, while maintaining an Outperform rating. The firm also removed Lululemon from its Top 5 Outperform list, replacing it with Ulta Beauty (NASDAQ:ULTA).

Evercore has trimmed its earnings outlook for Lululemon, lowering Q2 EPS to $2.95 from $3.00—still above the Street’s $2.88 consensus—and reducing global same-store sales growth expectations to 3.3% from 3.7%. For FY2025, EPS was revised down to $14.50 from $14.90, with same-store sales growth now projected at 3% instead of 4%, and gross margins expected to decline 130 basis points to 57.9%. FY2026 EPS was also cut to $15.85 from $16.70, slightly above the consensus of $15.58, as Evercore flagged concerns over Lululemon’s long-term growth trajectory.

Lululemon Athletica, Inc. (NASDAQ:LULU) is a Canadian athletic apparel company. It designs and sells performance wear, accessories, and footwear for activities such as yoga, running, and training. The company operates over 760 stores across North America, Asia, and Europe, and maintains a strong direct-to-consumer presence through its e-commerce platform.

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Disclosure: None. This article is originally published at Insider Monkey.