Down 49% This Year, Lululemon Could Sink Even Deeper -- Here's Why Wall Street Analysts Are Downgrading the Stock
In June, the management team of Lululemon Athletica (NASDAQ: LULU) spoke to investors about its need for new and innovative athletic apparel products, and excitingly talked up the pending launch of its new Breezethrough leggings. In July, the Breezethrough line was abruptly pulled from shelves after customers panned them as unflattering.
After Lululemon pulled Breezethrough, some Wall Street analysts responded by pulling their buy ratings for the stock. Lululemon stock is now down nearly 50% from the high it reached less than one year ago. And the price targets from analysts have been coming down as well.
For example, JPMorgan analyst Matthew Boss lowered his price target for Lululemon stock from $457 per share to $338 per share, according to The Fly, citing elevated execution risk for the company. In other words, it launched what was supposed to be an innovative new product but was instead a quick flop. Simply put, Lululemon needs to execute better than that.
Source Fool.com
Lululemon Athletica Inc. Stock
Currently there is a rather positive sentiment for Lululemon Athletica Inc. with 92 Buy predictions and 6 Sell predictions.
With a target price of 453 € there is potential for a 109.48% increase which would mean more than doubling the current price of 216.25 € for Lululemon Athletica Inc..
