(Updates with the analyst's commentary.)
Morgan Stanley lowered Lululemon Athletica's (LULU) price target to $411 from $420 while maintaining its overweight rating.
The brokerage believes the bar heading into fiscal Q4 2024 "feels lower than just a few weeks ago" as market confidence in "a newness-driven Q1/H1 Americans/US inflection" has decreased.
Morgan Stanley said it expects sales-driven fiscal Q4 EPS upside, while fiscal Q1 2025 sales guidance could be "a touch light of Street estimates".
The brokerage expects investor focus on the quarter-over-quarter Americas comp improvement and "the US go-forward trajectory."
Lululemon Athletica has an average rating of overweight and mean price target of $406.76, according to analysts polled by FactSet.
(MT Newswires covers equity, commodity and economic research from major banks and research firms in North America, Asia and Europe. Research providers may contact us here: https://www.mtnewswires.com/contact-us)
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