UPDATE: Sterne Agee Downgrades Lululemon On Damaged Brand

In a report published Friday, Sterne Agee analyst Sam Poser downgraded the rating on

from Neutral to Underperform, but named a $39.00 price target. In the report, Sterne Agee noted, “The Lululemon brand has been damaged due to the many events of 2013 and the uninspiring tenure thus far of the new CEO. Many customers have left and it's hard to get them back, especially given the focus on the women's active apparel business from brands such as Nike and Under Armour, and retailers such as Athleta, Sweaty Betty, Victoria's Secret, and others which have bitten into LULU. LSD SSS are likely through 2015; such sales growth does not warrant anything more than a 20X multiple.” Lululemon closed on Thursday at $45.19.