** Piper Sandler slashes PT on sportswear maker Lululemon LULU.O to $200 from $270; a 7.6% downside to the stock's last close
** Maintains a "neutral" stance
** Brokerage questions if Lululemon is spending too much on innovation, pointing to its 57 times “newness in color” mentions, nearly triple from last year
** Co shares marginally up in premarket trading
** Piper Sandler also points out the sale section is growing, with more items in “We Made Too Much” than last holiday season, which could mean more risk to future earnings estimates
** "We see...new product moves to clearance racks quickly as the consumer doesn't have a chance to react to newness, helping explain the step-up in discounting" - brokerage
** Stock rated "buy" on average from 34 analysts; median PT $280.49, per data compiled by LSEG
** Up to last close, stock has fallen ~43% YTD
(Reporting by Akriti Shah in Bengaluru)
((akriti.shah@thomsonreuters.com))
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.