Truist Securities downgraded Lululemon Athletica (LULU) to "sell" from "hold." The firm reduced its price target to $94 from $115. This new target represents a potential downside of nearly 20% from the stock's previous closing price. The downgrade reflects a significant negative shift in Truist's outlook for the athletic apparel retailer.
Truist based its decision on several factors. The firm views near- to medium-term risks as "skewed to the downside." Truist noted little visibility into a potential recovery. The firm cited pressured demand trends. It also noted waning brand momentum based on search data. Recent public relations missteps also contributed to concerns. Truist highlighted intensifying competition.