Jefferies Cuts Lululemon Athletica Inc. (LULU) Price Target Even as Wall Street Expects Sales Growth

Lululemon Athletica Inc. (NASDAQ:LULU) is one of the top stocks in Michael Burry’s stock portfolio. On October 6, an analyst at Jefferies reiterated an ‘Underperform’ rating on the stock and cut the price target to $120 from $150.

The price target cut comes amid concerns that the company is facing the same challenges that Under Armour faced between 2015 and 2025, including a decline in market share. In addition, the company is struggling with fashion shifts and strategic missteps.

Amidst the concerns, Lululemon still boasts of sky-high sales per square foot and margins compared to the mall average and its peers. Additionally, consensus on Wall Street is that the company is well-positioned to deliver sales growth in 2026.

Lululemon Athletica Inc. (NASDAQ:LULU), manufactures and sells athletic apparel, footwear, and accessories, particularly known for its premium-quality yoga, running, and training wear. It sells its products through its own retail stores and direct-to-consumer online channels, offering a range of items for both women and men.

While we acknowledge the potential of LULU as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

READ NEXT: Top 10 Materials Stocks to Buy According to Analysts and 10 Best Organic Food and Farming Stocks to Buy Now.

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