BofA cuts Lululemon price target, sees ‘particularly good opportunity’

BofA lowered the firm’s price target on Lululemon (LULU) to $300 from $370 and keeps a Buy rating on the shares, calling the stock’s recent selloff and all-time low valuation “a particularly good opportunity to own a strong growth company with high margins.” The firm’s lowered target standardizes its methodology with other growth stocks and reflects the tougher macro backdrop, but it thinks the stock will re-rate if Lululemon can execute on its Q2 sales growth of 7%-8% and reiterate a similar range for the second half, the analyst tells investors.