FBR Capital Maintains an 'Underperform' on Lululemon Athletica (LULU) Into 1Q Earnings Report

FBR Capital maintains an 'Underperform' on Lululemon Athletica Inc. (NASDAQ: LULU), PT $80.

FBR analyst says, "We downgraded lululemon athletica about two weeks ago due to concerns that product cost pressure would be higher than previously anticipated and impact guidance. The company is scheduled to report earnings on Friday. The stock is down nearly 15%, versus the S&P 500 down 3%, since we downgraded. We still have high conviction that quality problems will lead to pricier sourcing. However, it is possible that management will not acknowledge these issues on the 1Q earnings call. The risk/reward of staying short the name has changed given the move down in the shares."

For more ratings news on Lululemon Athletica Inc. click here and for the rating history of Lululemon Athletica Inc. click here.

Shares of Lululemon Athletica Inc. closed at $83.09 yesterday.

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