UBS Cuts Price Target After lululemon athletica (LULU) Eliminates CPO Role

UBS maintained a Neutral rating on Lululemon Athletica Inc. (NASDAQ: LULU), and cut the price target to $55.00 (from $59.00), following the elimination of the role of Chief Product Officer. Analyst Michael Binetti believes that this change adds questions to a story that has had a high-level of leadership turnover in the last two years and is in the midst of a product turnaround.

Binetti commented, "We believe the elimination of the role of Chief Product Officer, held by Tara Poseley since October 2013, adds questions to a story that has had a high-level of leadership turnover in the last two years and is in the midst of a product turnaround. Ms. Poseley was brought into the company after a high-profile quality issue and, in our opinion, has been a key player in LULU's product turnaround strategy. While the new EVP Creative Director Lee Holman (previously SVP of Women's) has a solid resume (joined LULU in 2014 from NKE), for the near term, we believe it calls into question how satisfied the company is with the direction of the product. Maintain Neutral; lowering PT to $55."

For an analyst ratings summary and ratings history on Lululemon Athletica Inc. click here. For more ratings news on Lululemon Athletica Inc. click here.

Shares of Lululemon Athletica Inc. closed at $52.00 yesterday.

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