Morgan Stanley initiated coverage of Lululemon Athletica Inc. (LULU) on July 6, 2026.
The bank assigned an Underweight rating and a $93 price target.
Analysts expect the stock to underperform the average return of its coverage universe over the next 12 to 18 months.
This bearish outlook persists despite a favorable specialty retail and department store sector forecast for the second half of 2026.
The initiation coincided with a broader resumption of coverage across apparel and department store companies.