UBS Slashes lululemon athletica inc. (LULU)’s Price Target to $240, Maintains Neutral Rating

lululemon athletica inc. (NASDAQ:LULU) is among the 13 Best S&P 500 Stocks to Buy According to Wall Street Analysts. However, on August 18, UBS slashed the stock’s price target to $240 from $290 while maintaining a Neutral rating for its shares.

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The firm cited the company’s lackluster sales momentum in August as the reason behind the adjustment. The company has generated just 1% sales growth in the U.S. during Q2, the analyst told investors in a research note.

Moreover, UBS expects lululemon athletica inc. (NASDAQ:LULU) to cut its EPS guidance by 20c due to tariffs and related cost headwinds. However, the market already anticipates a similar outcome, said the analyst, because of which the firm doesn’t expect it to significantly impact the company’s P/E ratio in Q2.

Having said that, Wall Street analysts maintain an encouraging outlook for the stock, with a consensus Buy rating. Moreover, lululemon athletica inc. (NASDAQ:LULU) has a one-year average share price target of $283.78, representing an upside potential of nearly 43%.

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.

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