Piper Sandler has reaffirmed a Neutral rating on Lululemon Athletica Inc. and maintained a $190.00 price target after convening a "Bull vs. Bear" investor discussion focused on the retailer’s near-term outlook. The research house underscored significant uncertainty surrounding the ongoing CEO search, noting potential internal and external candidates that have been discussed, including Jane Nielsen and Fran Horowitz.
The firm signaled that a margin reset is likely for the athletic-apparel company, while also observing that the shares appear inexpensive when viewed against specialty retail valuation bands of roughly 13-14 times earnings. Lululemon’s current price-to-earnings multiple stands at 11.77, and InvestingPro analysis cited in the firm’s commentary suggests the name is meaningfully below its Fair Value.
Piper Sandler highlighted the possibility of a sizable directional move in the stock tied to a CEO appointment, drawing a parallel to notable market reactions recorded for other blue-chip consumer names following leadership changes. At the same time, the firm admonished that improving product assortment, re-engaging core customers and restoring healthy full-price selling will require time.
The stock has come under pressure over the past year, falling more than 56% and trading around $173.71, a substantial gap from its 52-week high of $400.01. Against that backdrop, Piper Sandler raised its estimates for fourth-quarter 2025 and fiscal 2026, but left first-quarter 2026 forecasts below consensus, reflecting continued reservations about product trajectory. The research team specifically cited concerns about the recently introduced EasyFive denim collection after its review.
InvestingPro data noted in the analysis points to Lululemon’s resilient liquidity profile, with cash and liquid assets that exceed short-term obligations. The research note directs subscribers to a more extensive Pro Research Report for deeper coverage and more than 10 additional ProTips on the company’s financial condition.
Several operational and product items that have surfaced recently have attracted investor attention. Lululemon temporarily halted online sales of its "Get Low" leggings in North America following customer complaints about sheerness; those items remained available in physical outlets and other markets. The leggings have since been restored to online availability with guidance advising customers to choose a larger size and to wear appropriate undergarments.
KeyBanc Capital Markets analysts have flagged continuing customer reports that another Lululemon product, the "heart scatter" leggings, can become see-through under certain activities. Those quality-related complaints form part of the backdrop against which other firms have weighed the stock.
Not all brokers share Piper Sandler’s Neutral view. BTIG has reiterated a Buy rating with a $303.00 price target, pointing to execution opportunities even as it characterizes immediate product-driven upside expectations as modest. BTIG also emphasized Lululemon’s enthusiasm about its new performance fabric while suggesting that investor expectations for instant impact should be tempered.
Taken together, the commentary and recent operational developments present a mixed picture for the company: a valuation that some analysts view as attractive relative to specialty retail peers, but product and leadership uncertainties that could constrain improvement near term. Piper Sandler’s positioning reflects that balance by keeping a Neutral stance and a below-current-price target while acknowledging both upside scenarios and execution risks.
For investors seeking a deeper dive into the financial metrics and scenario sensitivities, the referenced InvestingPro Pro Research Report contains additional analysis and guidance for subscribers.