Lululemon price target lowered to $270 from $325 at Citi

Citi lowered the firm’s price target on Lululemon (LULU) to $270 from $325 and keeps a Neutral rating on the shares. The company’s Q1 was disappointing as total comps of up 1% were below the consensus estimate of up 4%, driven by weaker China, the analyst tells investors in a research note. Lululemon’s Q2 sales guidance is in-line with consensus but tariffs and investments are weighing on margins, driving a below consensus earnings outlook, contends Citi. The firm still sees a balanced risk/reward at current share levels.