Lululemon athletica's (LULU) weak product assortment and soft traffic trends won't be resolved anytime soon, making any stock pullback following its disappointing Q1 results a poor buying opportunity, UBS Securities said Friday in a report.

With new CEO Heidi O'Neill not starting until September, UBS said it sees no meaningful recovery before H2 2027, adding that higher marketing spending is unlikely to help this year given the company lacks compelling product to promote.

Lululemon's growth trajectory may deteriorate further as the company pulls back on promotions in the back half of fiscal 2026, even as management's guidance assumes sales growth rates hold steady, the report said.

UBS cuts its price target on lululemon stock to $124 from $153 and maintained its neutral rating.

Price: 114.50, Change: -10.42, Percent Change: -8.34