Lululemon price target lowered to $405 from $420 at BTIG

BTIG analyst Janine Stichter lowered the firm’s price target on Lululemon (LULU) to $405 from $420 but keeps a Buy rating on the shares. The company’s Q1 results beat slightly on top-line and gross margins, but the focus is on the outlook, which was lowered largely to account for incremental tariffs, with Q2 being the pressure point, the analyst tells investors in a research note. The firm adds however that there’s conservatism with regards to the outlook as the management appears to not embed significant tariff offsets in the near-term and conservatively assumes higher markdowns vs. markdowns currently trending lower y/y. BTIG also believes that the stock reaction is overdone as fundamentals on the name “remain unchanged”.