LULU, LOW Stocks Hit Multi-Year Lows – Here’s What Wall Street Is Saying

Citi flagged Lululemon’s weak sales and uncertain outlook for fiscal 2027, while Bernstein cut LOW stock’s price target, warning of a longer-than-expected recovery in the home-improvement market.

• Citi lowered LULU’s price target to $117 from $130 while maintaining a ‘Neutral’ rating, according to The Fly.
• On Tuesday, BMO Capital began coverage on LULU with an ‘Underperform’ rating and a $70 target.
• Bernstein said expectations have shifted from rate cuts toward possible hikes, which could keep housing turnover weak.

Lululemon (LULU) and Lowe’s (LOW) were in focus on Wednesday after Wall Street cut price targets on both retailers, citing an uncertain sales outlook for Lululemon and a delayed recovery in home-improvement demand for Lowe’s.

At the time of writing, LOW shares were down around 1%, their lowest levels since November 2023, while LULU stock traded down more than 3%, having fallen to May 2018 lows earlier in the session.

Citi Flags LULU’s Uncertain Fiscal 2027 Outlook

Lululemon received a price target cut on Wednesday as Wall Street remained cautious amid weakening sales and an uncertain outlook. Citi lowered the price target to $117 from $130 while maintaining a ‘Neutral’ rating following the company’s second-quarter results, according to The Fly. This represents a 17.6% upside from current levels.

The firm said the stock’s risk-reward looks “slightly more favorable” after its recent selloff, but Lululemon’s fiscal 2027 outlook remains “very unclear.” The stock has declined more than 16% since the company’s Q2 results last month.

The move follows BMO Capital’s decision on Tuesday to initiate coverage with an ‘Underperform’ rating and a $70 target price, citing weaker demand in North America and pressure on profit margins.

Lululemon’s second-quarter revenue fell 4% to $2.42 billion, below Wall Street estimates, while comparable sales dropped 9%. Sales in the Americas declined 8%. The company expects third quarter (Q3) revenue to fall 10% to 11% to between $2.29 billion and $2.32 billion. Interim co-CEO and CFO Meghan Frank also said the third quarter had gotten off to a “slow start.”

Retail sentiment surrounding LULU on Stocktwits remained ‘extremely bullish’ over the past 24 hours, but the stock has been under heavy selling pressure so far this year, tanking more than 52%.

Bernstein Sees Weak Recovery In Home Improvement Market

Lowe’s received a price-target cut on Wednesday as Bernstein warned that a recovery in home-improvement spending may take longer than previously expected. The firm lowered its price target to $254 from $261 while maintaining an ‘Outperform’ rating. The latest price target implies a 27% increase over current levels.

Bernstein said a recovery remains a question of “when, not if,” as aging U.S. homes should eventually support renovation demand. The brokerage said expectations have shifted from rate cuts toward possible hikes, which could keep housing turnover weak and make home-improvement projects more expensive.

Rate expectations have also turned less favorable. According to the CME FedWatch Tool, traders were pricing in about a 62.4% probability of a 25-basis-point Fed rate hike next week, compared to just over 44% last month.

Retail sentiment surrounding LOWE on Stocktwits turned ‘neutral’ from ‘bullish’ over the past 24 hours. LOW shares have shed nearly 20% so far in 2026.

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