Lululemon Athletica Inc. is getting a cautious vote of confidence from JPMorgan, which has nudged up its Q4 2025 EPS estimate and price target after meeting with the brand’s investor relations team at the ICR Conference. The move comes on top of earlier guidance upgrades from Lululemon itself following a strong holiday season, reinforcing the view that the athleisure leader is still executing solidly even as analysts stay selective on valuation.
JPMorgan’s Updated View
According to a note summarized by Insider Monkey and Yahoo Finance, JPMorgan raised its Lululemon (LULU) price target from $203 to $209 on January 20, 2026, maintaining a Neutral rating on the stock. After hosting a meeting with the company’s VP of Investor Relations at the ICR Conference, the bank also lifted its Q4 2025 EPS estimate and is now modeling full year 2026 EPS of $12.33, slightly below Wall Street’s $12.65 consensus.
This positioning suggests that while JPMorgan acknowledges Lululemon’s continued strength, it sees limited upside at current levels relative to its target, hence the neutral stance rather than a more bullish call. The bank still includes LULU among stocks that could potentially double by 2030, underscoring its long term structural appeal.
Deutsche Bank’s Take And Sector Backdrop
Earlier, on January 8 2026, Deutsche Bank reinstated coverage of Lululemon with a Hold rating and a $228 price target as part of a broader reboot of its work on global brands, off price retail, and specialty beauty. The firm entered 2026 with an optimistic view on the sector, expecting a volatile but broadly “risk on” macro environment, strong revenue trends in the first half, and tailwinds from easier weather comparisons and higher tax refunds.
That backdrop adds context to Lululemon’s story: it is operating in a category where consumer demand is still resilient, but stock selection and entry point matter as valuations remain elevated across premium athletic and lifestyle names.
Lululemon’s Own Upgraded Guidance
Separately, Lululemon has already raised its own Q4 outlook after a better than expected holiday. In mid January 2025, the company said it now expects net revenue of $3.56 to $3.58 billion for the fourth quarter, up from a prior range of $3.48 to $3.51 billion, representing 11% to 12% growth versus the same quarter of fiscal 2023 (or 6% to 7% excluding the 53rd week of 2024).
It also lifted its Q4 EPS guidance to $5.81 to $5.86 per share, from a previous range of $5.56 to $5.64, after CFO Meghan Frank noted shoppers responded well to the company’s product offering during the holiday season. That momentum feeds directly into the earnings trajectory JPMorgan and other banks are now recalibrating.
What It Means For Investors
Taken together, the updates show a company still delivering double digit top line growth and raising guidance, while major banks step up their models but avoid outright “screaming buy” calls based on current pricing. Lululemon remains widely viewed as a high quality, global growth story in technical athletic apparel, footwear and accessories, but expectations are high and the bar for upside surprises is rising.
For investors, JPMorgan’s slightly more optimistic numbers and modestly higher target signal confidence in execution, yet also a belief that much of the near term strength is already reflected in the stock. Longer term, the bank’s comment that LULU could potentially double by 2030 keeps it firmly on the radar of growth oriented portfolios willing to ride out volatility in premium retail.
