Morgan Stanley analyst Alex Straton has reinstated an Underweight rating on Lululemon Athletica (NASDAQ: LULU) and announced a price target of $93. The rating change reflects a revised outlook on the apparel company's stock performance.

The reinstatement of the Underweight rating accompanies the specific price target set by the firm. This adjustment provides investors with a revised valuation benchmark for Lululemon Athletica shares.

Analyst Details

The research note identifies Alex Straton as the covering analyst at Morgan Stanley responsible for the rating and target price update.

Stock Performance Metrics

Hagens Berman, along with co-counsel The Miller Law Firm, filed a consumer class action alleging Lululemon collected hundreds of millions of dollars from customers through price increases tied to tariffs that have since been invalidated. The lawsuit, filed June 30, 2026, in the U.S. District Court for the Western District of Washington, claims the retailer seeks to recover tariff payments from the government without committing to refund the consumers who ultimately bore the costs.

The complaint alleges that beginning in February 2025, following the imposition of tariffs under the International Emergency Economic Powers Act (IEEPA), Lululemon raised prices on imported products sold directly to consumers. After the U.S. Supreme Court invalidated the IEEPA tariffs on Feb. 20, 2026, Lululemon filed suit in the U.S. Court of International Trade to recover the tariffs it had paid. According to the filing, Lululemon has made no commitment to return any portion of those funds to consumers.

Tariff Impact and Price Increases

Public reporting estimated the tariffs would reduce Lululemon’s gross profit by approximately $240 million. The lawsuit states that both Lululemon’s CFO and CEO publicly stated the company planned to raise prices in response to the tariffs and implemented these increases nationwide. Lululemon imports a significant share of its products from countries subject to the tariffs, including Vietnam, Cambodia, China, Indonesia, and Canada.

Legal Claims and Consumer Impact

Steve Berman, managing partner of Hagens Berman, stated that Lululemon admitted tariffs drove up costs and forced price increases. He argued that since the tariffs were ruled unlawful, the money Lululemon stands to recover belongs to the consumers who paid it. The lawsuit brings claims for unjust enrichment and violations of state consumer-protection laws, seeking to recover losses incurred by Lululemon customers.

Federal law grants the right to recover unlawfully collected tariffs exclusively to the importer of record. As a result, consumers are left without compensation unless the importer passes the refund along. The complaint notes that other retailers have established tariff refund programs, but Lululemon chose not to do so. Consumers who purchased from Lululemon between February 2025 and February 2026 may have overpaid due to the unlawful collection of tariff fees.