UPDATE: Jefferies Cuts PT to $73 on Lululemon Athletica on Valuation Concerns

Jefferies reiterates its Hold rating on Lululemon Athletica LULU and reduces its price target from $76 to $73. Jefferies comments, "1Q doesn't change our long-term view but does make us more hesitant around valuation. We are OK with management's strategic decision to restrict sales upside (in favor of long-term product innovation) but can't help but wonder how the market would react to LULU actually posting a LDD% SSS in 2Q12. Similar to LY's inventory shortage issues, it may take the market 1-2 quarters to completely digest this latest development." LULU closed at $70.02 on Thursday.