Baird Downgrades Lululemon Athletica Inc. (LULU) to Neutral

Baird analyst Mark Altschwager downgraded Lululemon Athletica Inc. (NASDAQ: LULU) from Outperform to Neutral with a price target of $195.00 (from $225.00).

The analyst comments: "Our downgrade reflects low near-term confidence in the growth and margin trajectory. We previously signaled reduced confidence with our FQ2 checks and sharply reduced estimates following the disappointing FQ2 report; upon further review, we think the higher degree of earnings uncertainty will overshadow compelling valuation multiples in the near term, making it difficult to defend/recommend shares. We continue to see good long-term value in the brand/stock at current levels, but we prefer to step in when we have more conviction that the negative earnings revision cycle has run its course."

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 $173.41 yesterday.

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