Lululemon downgraded to Neutral at BofA with U.S. recovery pushed out

As previously reported, BofA downgraded Lululemon (LULU) to Neutral from Buy with a price target of $210, down from $300, arguing that the company’s Q2 beat was “overshadowed” by reduced sales guidance and much larger than expected de minimis and tariff pressure. The U.S. turn has been pushed further out and overearning on e-commerce from the use of the de minimis exemption will be unwound, says the analyst, who is lowering the firm’s FY25 and FY26 EPS estimates by 12% and 21%, respectively.