Jefferies predicts Lululemon stock to drop 30% due to EPS concerns.

From Investing.com: 2024-04-29 08:33:02

Jefferies analysts maintained an Underperform rating on Lululemon Athletica with a $240 price target, anticipating a 35% downside risk. The Other Categories segment saw rapid growth generating $1.2 billion in revenue in 2023, driven mostly by The Everywhere Belt Bag. The bag contributed $630M in revenue, boosting EPS by 350 basis points, now leading to headwinds as demand wanes. Alo and Vuori are gaining share, slowing the athletic category. Multiples may compress further due to declining EPS next year.



Read more at Investing.com: Jefferies sees a 30%+ downside risk in Lululemon stock on EPS growth fears By Investing.com