Piper Sandler analyst Anna Andreeva has revised her outlook on Lululemon (LULU, Financial), reducing the company's price target from $315 to $280 while maintaining a Neutral rating on the stock. The adjustment is attributed to significant tariff pressures, including a 145% tariff on Chinese imports and a 10% tariff on goods from other countries.
The firm has also downgraded its earnings per share (EPS) estimates by 14% for the fiscal years 2025 and 2026. This revision reflects the decision to absorb 25% of the increased cost pressures into the profit and loss statements. Additionally, there is a projected decrease in sales expectations due to the potential impact of a recessionary period which could dampen consumer demand.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 30 analysts, the average target price for Lululemon Athletica Inc (LULU, Financial) is $350.07 with a high estimate of $500.00 and a low estimate of $194.00. The average target implies an upside of 36.42% from the current price of $256.62. More detailed estimate data can be found on the Lululemon Athletica Inc (LULU) Forecast page.
Based on the consensus recommendation from 34 brokerage firms, Lululemon Athletica Inc's (LULU, Financial) average brokerage recommendation is currently 2.3, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Lululemon Athletica Inc (LULU, Financial) in one year is $522.72, suggesting a upside of 103.69% from the current price of $256.62. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Lululemon Athletica Inc (LULU) Summary page.
