Lululemon price target lowered to $317 from $366 at Needham

Needham lowered the firm’s price target on Lululemon (LULU) to $317 from $366 and keeps a Buy rating on the shares. The company posted fairly lackluster Q1 results, though the selloff in the stock seems “aggressive” relative to the size of the management’s guidance cut, particularly since the guidance reduction is mostly tariff-driven, and also considering that the management struck an encouraging tone around the performance of new products, the analyst tells investors in a research note. Lululemon’s domestic business remains sluggish however while the international comp growth slowed dramatically in Q1, likely raising questions about the growth algo from here, Needham added.