Wells Fargo Lowered the Firm's PT on Lululemon Athletica (LULU), Kept an Equal Weight Rating

lululemon athletica inc. (NASDAQ:LULU) is one of the Undervalued Cyclical Stocks to Buy According to Hedge Funds. On August 4, Wells Fargo analyst Ike Boruchow lowered the firm’s price target on lululemon athletica inc. (NASDAQ:LULU) from $270 to $225 and maintained an Equal Weight rating on the stock.

The analyst believes that the story for lululemon athletica inc. (NASDAQ:LULU) remains tough, noting three main concerns. The first challenge for the company is its uncertain US comparable sales, along with an uncertain growth in China. On top of these challenges, the second half of the year is anticipated to be tougher due to tariff and markdown pressures.

Management released its second quarter 2025 outlook during its first quarter earnings call. The company expects net revenue to be in the range of $2.535 billion to $2.560 billion, reflecting 7% to 8% growth.

lululemon athletica inc. (NASDAQ:LULU) designs and sells technical athletic apparel, footwear, and accessories.

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