{
  "id": 3276449,
  "title": "Lululemon stock price target lowered by UBS on weak sales outlook",
  "url": "https://urgent.news/2026/08/25/lululemon-stock-price-target-lowered-by-ubs-on-weak-sales-outlook",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-08-25T14:11:21.000Z",
  "source": {
    "name": "Investing.com",
    "slug": "investing-com",
    "url": "https://www.investing.com/news/analyst-ratings/lululemon-stock-price-target-lowered-by-ubs-on-weak-sales-outlook-93CH-4875595"
  },
  "original_language": "en",
  "account": "UBS has reduced its price target on Lululemon Athletica shares to $120 from $124, while maintaining a Neutral rating. The company is expected to see weak sales growth in China and the United States, leading to a reduction in fiscal 2026 earnings per share guidance by about $1.25 to a range of $9.70 to $9.90. This guidance falls below the Street's $10.93 fiscal 2026 EPS estimate and the market's expected range of $10.20 to $10.40. Lululemon currently trades at a P/E ratio of 9.88, and InvestingPro analysis considers the stock significantly undervalued. UBS doubts that management will announce significant changes to the U.S. action plan following the appointment of a new CEO, who joined just after the second-quarter report. The firm also notes that sentiment around Lululemon is already bearish, which may limit the downside potential for the stock price. The options market anticipates a move of plus or minus 9.9% around the earnings event, slightly higher than the historical average of 9.5%. Lululemon has undergone management changes, with the departure of key executives as the company prepares for the arrival of new CEO Heidi O’Neill. Other firms, such as Needham and Wells Fargo, have expressed concerns about Lululemon's performance in North America and China, suggesting that addressing these issues may require further revenue adjustments and investment. Morgan Stanley's recent intern survey also reflects challenges in the apparel and footwear markets, aligning with an underweight rating on Lululemon.",
  "summary": null,
  "key_points": [
    "UBS lowers Lululemon stock target to $120 from $124",
    "Weak sales growth expected in China and U.S. reduces EPS guidance",
    "Management changes and bearish sentiment limit downside potential"
  ],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 2,
    "also_reported_by": [
      {
        "outlet": "Investing.com",
        "title": "UBS reiterates Abercrombie & Fitch stock rating on growth outlook",
        "url": "https://urgent.news/2026/08/25/ubs-reiterates-abercrombie-fitch-stock-rating-on-growth-outlook",
        "published": "2026-08-25T14:11:21.000Z"
      }
    ]
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}