Lululemon price target raised to $205 from $190 at Bernstein

Bernstein analyst Aneesha Sherman raised the firm’s price target on Lululemon (LULU) to $205 from $190 and keeps a Market Perform rating on the shares. Despite weak macro and consumer sentiment, Discretionary Goods spend held up in 2025, although the sector overall underperformed the market. The firm sees two specific pockets of opportunity into 2026, namely higher-income exposed names, which outperformed in 2025 and should continue to benefit from stronger consumer sentiment and fiscal stimulus; and clearly dislocated Sportswear brands that have derated despite positive revisions and guidance raises, and should benefit from a continued secular behavioral shift towards Sports Footwear in 2026.