Lululemon Athletica LULU, +0.92% shares dropped 4% to $281.80 in premarket trade after Jefferies downgraded the athletics apparel maker to underperform from hold and cut its price target to $200 from $375. Analysts led by Randal Konik said the sector saw a spike in demand from COVID, which could slow growth against difficult comparisons. It’s also facing rising competition from the likes of Alo, Athleta, Rhone and Vuori, the analysts said, and there’s limited upside from its “sky high” $1,500 sales per square foot. The same analysts downgraded Under Armour UAA, +1.70% to hold and cut its price target to $10 from $20, citing management volatility and concerns over top-line growth and margins.
