Lululemon price target lowered to $160 from $175 at Jefferies

Jefferies lowered the firm’s price target on Lululemon (LULU) to $160 from $175 and keeps an Underperform rating on the shares. Lulu recently opened its first Italian store in Milan, but Alo Yoga is close behind with a smaller, likely more efficient Rome location, notes the analyst, who believes incremental ROIC continues to erode despite the company’s international ambitions. The firm continues to see “a significant cut to earnings ahead” with China softening, U.S. markdowns rising, and Europe unlikely to offset the pressure, the analyst tells investors.