UPDATE: Stifel Nicolaus Cuts PT to $75 on Lululemon Athletica Following Quality Issues

Stifel Nicolaus maintained Lululemon Athletica LULU at Buy and lowered the price target from $83.00 to $75.00. Stifel Nicolaus analyst Jim Duffy noted, "Lululemon announced yesterday that there is a quality issue on black Luon pants and crops. An associated recall will result in a supply shortage impacting 17% of pants in stores (total sales tops /bottoms ratio three-to-one). […] For the long-run investment picture, we see two areas of concern related to this announcement: 1) the potential impact to the brand from quality issues, and 2) questions around the productivity of revenue lines other than comp store sales (new store productivity, DTC, and Other)." Lululemon Athletica closed at $65.90 on Monday.