JFrog stock rises as Cantor Fitzgerald maintains Overweight rating after strong Q2
On Friday, Goldman Sachs analysts lowered the price target for Lululemon Athletica Inc. (NASDAQ: NASDAQ:LULU) to $285 from $302, while maintaining a Neutral rating. The adjustment comes amid concerns over weaker comparative trends in the company’s core business, despite positive consumer engagement with new products. According to InvestingPro data, LULU maintains impressive financial health with a 59.22% gross profit margin and healthy revenue growth of 10.07% over the last twelve months.
The analysts noted that while management’s commentary on consumer interest in new offerings was constructive, it did not offset the slower trends observed, particularly in China and the Rest of the World (RoW). The slowdown in these regions was not fully anticipated and raises questions about Lululemon’s ability to scale globally, alongside ongoing concerns about growth in the United States. InvestingPro analysis shows the company maintains strong financial fundamentals, with a current ratio of 2.16 and more cash than debt on its balance sheet.
Management also highlighted increased expectations for potential tariff impacts but expressed confidence in navigating the challenging environment. The company’s fiscal year outlook is now considered more de-risked regarding tariffs and promotions, with promotional activities expected despite favorable trends in the first quarter.
Looking ahead, there is potential for momentum to build in the second half of the year as new products gain traction. The Align (NASDAQ:ALGN) No Line franchise, despite limited availability in about 80 stores, has shown strong consumer engagement, with plans to expand distribution across all locations by September.
In other recent news, Lululemon Athletica Inc. is set to release its first-quarter 2025 earnings, with various analysts providing insights ahead of the announcement. Piper Sandler has raised its price target to $315, maintaining a Neutral rating, and expects the company to surpass buy-side expectations, noting stable U.S. trends and successful new product lines. TD Cowen has also adjusted its outlook, increasing the price target to $373 with a Buy rating, citing confidence in Lululemon’s earnings potential despite tariff uncertainties. Similarly, Stifel maintains a Buy rating with a $353 target, anticipating the company will exceed first-quarter estimates due to strong U.S. customer engagement and international growth, especially in China.
Raymond (NSE:RYMD) James, on the other hand, has reaffirmed a Market Perform rating, expressing caution due to macroeconomic uncertainties and tariff pressures, projecting a 7% revenue increase. Citi has raised its price target to $325, maintaining a Neutral stance, and suggests Lululemon may surpass first-quarter earnings per share expectations, driven by stronger sales in the Americas and China. Analysts from various firms expect Lululemon to reaffirm its fiscal year 2025 EPS guidance, highlighting the company’s strategic pricing and product innovations. As the earnings report approaches, the focus remains on Lululemon’s ability to navigate domestic and international market challenges while maintaining growth momentum.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.