Lululemon downgraded to Equal Weight from Overweight at Morgan Stanley

Morgan Stanley downgraded Lululemon (LULU) to Equal Weight from Overweight with a price target of $280, down from $346. Even should profitability-driven EPS outperformance occur this year, the analyst thinks focus will remain on the North American comp trajectory and has lesser confidence in a positive Americas comp inflection, the analyst tells investors. The firm lowered its medium-term estimates post the Q1 print and views consensus forecasts as “fair-to-high,” the analyst added.