Lululemon Price Target Cut to $205, Equal Weight Rating Maintained by Wells Fargo

Wells Fargo analyst Ike Boruchow lowered Lululemon's price target to $205 from $225 and keeps an Equal Weight rating. The firm cut estimates due to the expiration of the de minimis exemption, which could result in a $0.90-$1.10 EPS headwind. Wells sees "material risk" to the company's 2026 estimates and expects a guidance cut.

Wells Fargo analyst Ike Boruchow recently lowered Lululemon Athletica Inc.'s (NASDAQ:LULU) price target from $225 to $205, maintaining an Equal Weight rating. The decision was driven by the expiration of the de minimis exemption, which could lead to a $0.90-$1.10 earnings per share (EPS) headwind. Wells Fargo sees "material risk" to Lululemon's 2026 estimates and expects a potential guidance cut.

The de minimis exemption, which allowed for the import of small amounts of goods without incurring duties, expired on July 1, 2025. This change is expected to impact Lululemon's bottom line, with the firm estimating a $0.90-$1.10 EPS headwind. Additionally, the company is facing uncertainty in its U.S. comparable sales and growth in China, as well as challenges from tariff and markdown pressures in the second half of the year.

Despite these challenges, Lululemon reported strong earnings in the first quarter of 2025, with EPS of $2.60, meeting analyst expectations. The company's market capitalization stands at $23.12 billion, with a PE ratio of 13.07 and a beta of 1.16 [1]. However, the recent price target reduction reflects the uncertainty surrounding Lululemon's future performance.

Investors should closely monitor Lululemon's guidance and earnings reports to gauge the impact of the de minimis exemption and other factors on the company's financial outlook. As the market continues to evolve, it is essential to stay informed about the latest developments and their potential implications for Lululemon's stock price.

References:
[1] https://www.marketbeat.com/instant-alerts/filing-connor-clark-lunn-investment-management-ltd-takes-position-in-lululemon-athletica-inc-nasdaqlulu-2025-08-13/
[2] https://finance.yahoo.com/news/wells-fargo-lowered-firm-pt-042308224.html