Lululemon Shares Rise As Analysts Turn Positive Ahead Of Q1 Report: Retail Sentiment Jumps

Lululemon (LULU) shares rose 3.7% on Tuesday, after at least two Wall Street brokerages raised their price targets on the stock. The analyst actions come ahead of the athletic wear company's quarterly earnings report, scheduled for release on Thursday.

Piper Sandler raised the price target to $315 from $280 and maintained its 'Neutral' rating. Evercore ISI raised the target to $400 from $320 while keeping its 'Outperform' rating.

Lululemon faces challenges due to cautious U.S. consumer spending, tariff pressures, and intensified competition. In March, the company provided an annual outlook, including projected revenue growth of 5% to 7% for this year, which fell short of analyst estimates.

Heading into Q1 results, some analysts have turned optimistic on the company.

In a recent investor note, Morgan Stanley stated that Lululemon could surpass profit estimates and reaffirm its guidance, which would be a positive indicator.

The investment bank anticipates that the results will demonstrate strength in the North American market.

According to Koyfin data, analysts expect Lululemon to report a 7.3% growth in revenue to $2.40 billion and a 16% rise in adjusted earnings per share to $6.14.

On Stocktwits, the retail sentiment for Lululemon jumped to 'extremely bullish' from 'bearish' a week ago.

"$LULU crushed over tariffs and now it should be good to buy," said one user.

Another user said it is "tough to think in the coming economic turmoil, athletic wear will be in high demand."

Lululemon stock is down 12.4% this year.

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