UPDATE: UBS Lowers PT on Lululemon Athletica to $80

UBS published a research report Monday on Lululemon Athletica LULU and commented on the company's long-term growth story and also reiterated its Buy rating. In the report, UBS wrote, "While we don't believe these complaints materially impacted 2Q, we can't help but wonder if on the margin, sales and margins could be bit constrained in 3Q. Lululemon is synonymous in customers' minds with quality. For those customers who have dealt with these issues, near-term purchasing will likely subside. We are assuming at this point that these apparent issues are only impacting a small percentage of customers, though we will continue to monitor customer comments and seek color. We believe it is possible that a new factory was added over the past 9 or so months. If this was the case, the likelihood is that a change has already been made, though the impact will not be immediate." UBS lowered the price target on Lululemon from $86 to $80 Monday. Shares traded down almost one percent to $58.20 during trading.