Truist downgrades Lululemon to Hold amid ‘too much uncertainty’

analyst Joseph Civello downgraded Lululemon (LULU) to Hold from Buy with a price target of $170, down from $290, after Q2 results missed “already-depressed investor expectations” and the company materially lowered the fiscal year outlook. The current valuation “likely provides some support,” but the firm still sees potential risks to the downside and “too much uncertainty” from the combined pressure of a “stale” assortment, current tariff dynamics, macro pressure, headwinds from category weakness, and growing competition, the analyst tells investors.