UPDATE: Credit Suisse Lowers PT on Lululemon Athletica on Slowing Demand

In a report published Friday, Credit Suisse analyst Christian Buss reiterated a Neutral rating on Lululemon Athletica LULU, but lowered the price target from $79.00 to $75.00.. In the report, Buss noted, “Lululemon's results showed signs that underlying demand for the brand remains robust, with comps better than guidance (10% versus guidance for HSD) and eCommerce sales up 48% Y/Y adjusting for the extra week (56% reported). Soft Canada business trends, however, suggest that our thesis of moderating productivity gains in mature markets is playing out, limiting upside revenue potential. We also caution that the consumer-facing response to the product recall falls short of what we would consider an appropriate level, adding risk of a longer-term consumer backlash.” Lululemon Athletica closed on Thursday at $64.70.