Lululemon Athletica Inc. (NASDAQ:LULU) is one of the most active stocks to buy according to Wall Street analysts. TD Cowen recently lowered its price target on LULU to $220 from $298, citing the closure of the de minimis loophole that allowed 66% of Lululemon’s US e-commerce orders to be completed via Canada.

This unexpected proportion of orders via Canada gave Lululemon Athletica Inc. (NASDAQ:LULU) a significant financial boost of around 250 basis points to its gross margin, according to TD Cowen. The company had clear financial incentives to fulfill orders from Canada under the old regulations, despite having ample capacity in the US.

Lululemon Athletica Inc. (NASDAQ:LULU), a Canadian athleisure company, designs and distributes sportswear, accessories, and footwear. While LULU has investment potential, some AI stocks may offer greater upside with less downside risk. A report highlights an undervalued AI stock that could benefit from Trump-era tariffs and onshoring trends.

Read more at Yahoo Finance: TD Cowen Flags 250 Basis Point Margin Risk for Lululemon Athletica (LULU)