LULU Stock Outlook: Analysts Expect 75% Upside – Magic Post

LULU Stock Outlook: Analysts Expect 75% Upside

 – Magic Post

Lululemon Athletica Today

Lululemon athletica inc stock logo
LuluLulu's 90 Day Performance

lululemon athletica

$181.39 +8.96 (+5.20%)

As of 10/21/2025 at 04:00 PM ET

52 week range
$159.25

$423.32

P/E ratio
12.33

Price target
$228.42

Lululemon Athletica Nasdaq: Luluonce the darling of all retail stocks, has suffered one of the ugliest downtrends in the industry this year. Its shares are down nearly 60% from their peak in January, and every bullish attempt in the nine months since has been repelled by bears. Even though its revenue is near all-time highs, and its price-to-earnings (P/E) ratio is the lowest it has ever been, the stock is still trading back at 2019 levels.

The good news for those on the sidelines is that it is becoming more difficult to justify separation. After months of relentless selling, there are signs that the bears may finally be running out of steam. The key question is whether Lululemon has finally found a bottom — or if the stock is entering another extended downtrend. There are two compelling reasons to believe that the bottom may be in place, and one reason that suggests caution is still warranted.

Artistic image: Early signs of bottom formation

The first thing to note is that from a technical perspective at least, Lululemon is finally catching its breath and putting up a solid line of defense. The stock hasn’t made a new low since mid-September, and last week’s weakness was quickly bought into the weekend before it could retest those levels. Stocks have actually risen to start the week, indicating that buyers are becoming more aggressive.

The stock’s Relative Strength Index (RSI) has also begun to emerge from extremely oversold territory and has been trending higher in recent weeks, a classic sign of fading downside momentum. Combined with the fact that every decline since September has found higher short-term support, evidence suggests that sellers may have exhausted themselves.

The long-term trend is still ugly, but the short-term behavior is quite bullish. As long as the $160 line continues to hold, there is, at least, a temporary bottom forming.

Analyst support: Big upside targets remain

Another reason that adds weight to the argument that we are looking at a strong entry opportunity is that even with sentiment crushed, not all analysts are giving up – far from it. Take Janine Stichter and her team at BTIG Research, for example, who reiterated a Buy rating last week along with a $303 price target.

In a note to clients, they noted room for operational improvement and execution gains, while wondering whether the worst-case scenario had now been built into inventory. Starting with Monday’s closing price at around $172, they’re looking for a target upside of about 75% — not bad for a stock that has been sinking like a stone for most of the year.

What makes this decision even more urgent is that a valuation reset is already underway. Lululemon’s P/E ratio has fallen from nearly 30 at the beginning of 2025 to less than 12 today, meaning it won’t take much of an upside surprise in the next earnings report to spur a recovery. When you think about it Nike company New York Stock Exchange: OFanother battered retail stock, still trades at 35 times earnings, and Lululemon’s risk/reward setup looks particularly attractive right now.

Bear Case: Wall Street’s skeptics aren’t finished yet

Lululemon athletica stock forecast today

12-month stock price forecast:
$228.42
He catches
Based on 37 analyst ratings
Current price $181.39
High expectations $500.00
Average expectations $228.42
Low expectations $120.00

Lululemon Athletica Stock Outlook Details

However, it’s not all sunshine and rainbows. Many analysts remain unconvinced that Lululemon is out of the woods, and just last week, analysts from Bernstein downgraded its outperform rating to market perform.

They note that there are no near-term catalysts and that execution risks remain high.

The fact that they’re making this cut when the stock is already down 60% since January weighs heavily.

But you can’t help but feel that the time to issue this warning was earlier this year.

Since technical action and price action are now indicating a bottom forming before our eyes, we tend to say that actions speak louder than words.

Outlook: Cautious optimism with a clear line in the sand

Right now, it’s an extreme story: massively oversold, widely questionable, but still fundamentally strong. Investors may have to hold their noses for a while, but this is a strong combination for a return.

It may be difficult to maintain the bullish momentum if more cuts occur in the coming weeks, but if shares continue to hold above $160 into November, it will confirm that the bottom has already been reached.

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