Morgan Stanley Remains Concerned About Lululemon Athletica After Today's News

In a report published Friday, Morgan Stanley analyst Kimberly C. Greenberger reiterated an Equal-Weight rating on Lululemon Athletica (NASDAQ: LULU).

In the report, Morgan Stanley noted, “We are not more constructive despite the pullback and remain EW. We have been cautious since March's recall and today's news doesn't lessen our concerns. Even with LULU down 12% since 3Q's release, we remain on the sidelines. We look to holiday end to determine if the sales trends are short-term bumps or long-term dislocations.”

Lululemon Athletica closed on Thursday at $60.39.