Shares of Lululemon Athletica Inc. slumped 0.8% in morning trade Tuesday, after the yoga gear maker was downgraded at Stifel Nicolaus, which cited concerns that the stock may have gotten ahead of fundamentals. Analyst Jim Duffy cut his rating to hold from buy, but raised his stock price target to $66 from $61. The new price target was 7.3% above current levels. The stock had shot up 27.4% since the company reported results on June 1 through Monday's four-month closing high of $62.02, while the S&P 500 had gained just 1.6%. Given this outperformance, Duffy said it was "prudent" to reassess the stock's risk-versus-reward profile. "Contemplative of near-term upside potential, longer-term opportunities and risks, we are challenged to justify sufficient risk-adjusted valuation upside to support a buy rating," Duffy wrote in a note to clients. For Stifel Nicolaus, a buy rating represents an expectation of a total return of greater than 10% over the next 12 months.
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