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Lululemon Stock Alert: Why Analysts Are Hitting the Pause Button

Lululemon stock was downgraded. Analysts think competition is too tough and future profit predictions are "too high," creating financial risk.

Lululemon Stock Alert: Why Analysts Are Hitting the Pause Button
“Lululemon Store Canada” by bargainmoose, CC BY 2.0
  • The firm Needham recently lowered its rating on Lululemon (LULU) stock from "Buy" to "Hold".
  • Needham believes that the company’s current competitive situation is "too challenging".
  • The primary concern is that the expected financial estimates for Lululemon for fiscal 2026 are likely too high.
  • This creates a "downside risk" for the stock over the next 6-12 months, even if the company's core business doesn't worsen.
  • The analyst is waiting on the "sidelines" until Lululemon provides evidence that it can successfully "right the ship" in the U.S. market.