Lululemon Adjusts Price Target to $300, Maintains Buy Rating Amidst Challenging Market Conditions.

Bank of America has revised Lululemon's price target from $370 to $300, while maintaining a Buy rating. The firm sees the current low valuation as a favorable entry point for investors, citing the company's robust growth potential and strong margins. Lululemon's financial health is underscored by its impressive revenue growth and robust profitability metrics. The company's revenue growth over the past year stands at 13.2%, with a three-year growth rate of 21.2% and a five-year growth rate of 25.3%.

Bank of America has revised Lululemon Athletica Inc.'s (NASDAQ: LULU) price target from $370 to $300, while maintaining a Buy rating. The firm sees the current low valuation as a favorable entry point for investors, citing the company's robust growth potential and strong margins [1].

Lululemon's financial health is underscored by its impressive revenue growth and robust profitability metrics. The company's revenue growth over the past year stands at 13.2%, with a three-year growth rate of 21.2% and a five-year growth rate of 25.3% [2].

Despite concerns over slowing North America growth and rising discounting, Lululemon remains a key retail growth story, supported by its strong brand, innovative products, and substantial international expansion potential. Bank of America analyst Lorraine Hutchinson reiterated the Buy rating on Lululemon, lowering the price forecast from $370 to $300. The firm will release its financial results for the second quarter of fiscal 2025 on Thursday, September 4, 2025 [1].

Hutchinson noted that the stock could re-rate if Lululemon delivers second-quarter sales growth of 7–8% and guides a similar pace for the second half. She cut the price objective, shifting to a 20x P/E basis from 14x EV/EBITDA to align with growth stock valuation methods and reflect a tougher macro backdrop, adding that the selloff offers a good chance to own a high-margin growth name [1].

Lululemon expects a 50-basis-point hit in the second half under its 10%/30% tariff guidance for rest-of-world (ROW) and China. With current ROW tariffs at 20%, the analyst estimates only a modest additional drag this year due to timing, with the bulk of the impact shifting into next year [1].

Institutional investors have recently added to or reduced their stakes in the stock. Quantitative Investment Management LLC acquired 13,301 shares of Lululemon during the first quarter, worth approximately $3.76 million [3].

References:
[1] https://www.marketbeat.com/instant-alerts/why-lululemons-global-expansion-could-180427060.html
[2] https://www.marketbeat.com/instant-alerts/wells-fargo-company-cuts-lululemon-athletica-nasdaqlulu-price-target-to-20500-2025-08-19/
[3] https://www.marketbeat.com/instant-alerts/filing-quantitative-investment-management-llc-purchases-shares-of-13301-lululemon-athletica-inc-lulu-2025-08-24/