Stifel has revised its price target for Lululemon (LULU, Financial), reducing it from $424 to $353 while maintaining a Buy rating on the stock. This adjustment is part of a broader re-evaluation by the firm of its sports and lifestyle brands coverage, reflecting a potential implementation of tariffs. The average reduction in price targets across the board was about 18%.
The decision to lower the price target stems from the anticipation of tariffs that are expected to affect the earnings power in 2026. Specifically, Stifel's revised assessment assumes a general tariff rate of 10%, with goods originating from China subject to a 60% tariff. This new evaluation takes into account the significant impact such tariffs could have on the company's financials.
