Lululemon Athletica (NASDAQ:LULU) stock is sliding on Monday as investors react to a downgrade from Jefferies analyst Randal Konik.
Starting off the bad news for LULU stock is a downgrade from a “hold” rating to an “underperform” rating. To put that in perspective, the consensus rating from analysts for LULU shares is a “buy” based on 25 ratings.
To go along with that downgrade, Konik also cut Jefferies’ price target for LULU stock to $200 per share. The prior price target from the firm was $375 per share. For the record, the consensus price target for Lululemon Athletica is $418.50 per share. Also, LULU was trading at $293.39 per share when markets closed on Friday.
So what’s behind the bearish stance on LULU stock? There are a few factors that the Jefferies analyst believes are worth considering when taking into account the potential of the athletic wear company.
First off, Konik notes that LULU stock got a boost from the pandemic. He points to potential slower growth against that data that could make the future difficult for the company. Secondly, increasing competition is another factor to consider when investing in Lululemon Athletica.
Lululemon Athletica isn’t the only athletic wear company that Konik dinged recently. He also downgraded and cut the price of Under Armour (NYSE:UA, NYSE:UAA) as well. Though in that case, he cited volatility from management as one of the reasons behind the change, reports MarketWatch.
LULU stock is down 4.5% as of Monday morning and is down 28% since the start of the year.
Investors seeking more recent stock market news are in luck!
We’ve got all of the hottest stock news worth diving into today! That includes what’s happening with Digital World Acquisition (NASDAQ:DWAC), Twitter (NYSE:TWTR), and this morning’s biggest pre-market stock movers. You can learn all about these matters at the links below!
More Monday Stock Market News
- Why Is Digital World (DWAC) Stock Roaring Higher Today?
- TWTR Stock Falls as Elon Musk Scraps Twitter Deal
- Today’s Biggest Pre-Market Stock Movers: 10 Top Gainers and Losers on Friday
On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
