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.

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

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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 to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than LULU and that has 100x upside potential, check out our report about this cheapest AI stock.

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