Analysts: Lululemon Recall is Concerning and 4 New Opinions Investors Must Know Now
Lululemon Athletica (NASDAQ:LULU): Stifel decided to lower its target on the stock after the company recalled black Luon pants and crops because of a quality issue. The firm noted that this is the Lululemon’s second major quality issue in a year, and Stifel is “highly concerned” by this development but keeps its Buy rating on the stock. Bank of America Merrill Lynch also reduced Lululemon estimates because of the quality problem in the company’s core women’s black pants and crops. The firm has reduced its 2013 EPS estimate to $2.10 from $2.15 and its price target to $60 from $66, but the firm keeps its its Underperform rating on the stock.