Stifel Downgrades Lululemon (LULU) Athletica to Hold

Stifel has cut its rating on Lululemon Athletica (LULU) from Buy to Hold, slashing its price target from $324 to $205.

The firm cited slowing U.S. demand, particularly in casual apparel, and margin pressure from the removal of the de minimis trade rule as key risks. Analysts also flagged concerns over brand stagnation, with management acknowledging product offerings have become “too predictable.” While Lululemon trades at a relatively attractive valuation (~13.9× P/E),

Stifel expects near-term challenges to weigh on results until at least fiscal 2026, making the stock more of a “wait-and-see” story.