Lululemon (LULU) Price Target Cut Amid Leadership Concerns

Lululemon Athletica Inc. (NASDAQ:LULU) ranks among the most profitable Canadian Stocks to buy now. On March 18, Truist Securities reduced its price target for Lululemon Athletica Inc. (NASDAQ:LULU) shares to $170 from $200, keeping a Hold rating. The firm highlighted persistent uncertainty over the company’s CEO search as the main driver for the price target adjustment. The athletic gear retailer is under interim leadership for now as it looks for a new CEO.

Meanwhile, on March 17, Jefferies reiterated its Hold rating on Lululemon Athletica Inc. (NASDAQ:LULU) and set a $170 price target on the company’s shares. The company announced fourth-quarter comparable revenue growth of 3% and EPS of $5.01, exceeding estimates.

The company’s gross margin declined by about 550 basis points year-over-year, while inventory remained high at 18% above the previous year’s levels. The company provided revenue projections for fiscal 2026 of $11.35 billion to $11.5 billion, which exceeded the average estimate of $11.04 billion.

Lululemon Athletica Inc. (NASDAQ:LULU), a Canadian athleisure company founded in 1998, designs, develops, and distributes a variety of sportswear, accessories, and footwear.

While we acknowledge the risk and potential of LULU as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than LULU and that has 10,000% upside potential, check out our report about this cheapest AI stock.

READ NEXT: 33 Stocks That Should Double in 3 Years and 15 Stocks That Will Make You Rich in 10 Years 

Disclosure: None. Follow Insider Monkey on Google News.