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.
Eric Broder Van Dyke/Shutterstock.com
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., 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.
READ NEXT: Top 10 Materials Stocks to Buy According to Analysts and 10 Best Organic Food and Farming Stocks to Buy Now.
This article is originally published at Insider Monkey.
