Truist lowered the firm’s price target on Lululemon (LULU) to $290 from $297 but keeps a Buy rating on the shares after its soft Q2 guidance and reduced FY25 outlook. While the company is seeing a positive response to newer assortments, it has not been enough to move the needle on comps in the tougher macro, the analyst tells investors in a research note. The stock’s historical trough valuation after the post-earnings decline should provide some downside support however, with upside opportunities as Lululemon scales its new and more popular product through the Fall, the firm added.

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