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.
A close up of the hand of a financial analyst, holding a copy of a report from a rating agency.
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%.
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