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Deutsche Bank sets Lululemon stock to hold with $357 target By Investing.com

On Wednesday, Deutsche Bank resumed coverage on Lululemon Athletica Inc. (NASDAQ:), assigning a Hold rating and establishing a price target of $357. The firm cited several factors influencing their cautious stance, including increasing competition in the athleisure market, a trend towards more formal attire, and challenges to growth in the United States.

Lululemon, known for its high-end yoga pants and fitness wear, is facing headwinds as consumer preferences shift towards dressier and wider-leg styles, moving away from the brand’s staple leggings. Deutsche Bank’s analysis suggests that these trends could dampen Lululemon’s domestic sales growth. Moreover, the company may see squeezed margins due to heightened promotional activities, rising marketing costs, and limited scope for hiking prices.

Despite a significant drop in Lululemon’s share value, which has seen a 38% decline, and…

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