As previously reported, HSBC downgraded Lululemon (LULU) to Hold from Buy with a price target of $175, down from $275. The stock in midday trading is up $2.50 to $166.40. The firm believes the company has an “uphill battle” in turning around its U.S. business. Lululemon issued a “grim” fiscal 2025 outlook due to its ongoing corrective measures, tariff impacts and the end of the De minimis exemption, the analyst tells investors in a research note. As a result, HSBC cut Lululemon’s EBIT estimates by 21% on average through fiscal 2027.
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