UPDATE: D.A. Davidson Lowers PT on Lululemon Athletica, Says Company Will Correct Execution Issues

In a report published Monday, D.A. Davidson & Co. analyst Andrew Burns reiterated a Buy rating on Lululemon Athletica, Inc. (NASDAQ: LULU), dropping its price target from $73.00 to $64.00.

According to the report, the reiteration and price target drop is based on 25x the analysts revised 2015 estimate of $2.55. It is believed LULU will correct recent execution issues in the quarters ahead, restoring both its earning growth trajectory and growth valuation multiple.

“We are reiterating our BUY rating and lowering our price target to $64 (previously $73) based on 25x our revised 2015 estimate of $2.55,” the report noted. “We believe LULU will correct recent execution issues in the quarters ahead, restoring both its earnings growth trajectory and growth valuation multiple.”

Some highlights from the review included: -”Sentiment likely remains challenged until 2014 earnings guidance provided and business stabilizes.” -”Taking a cautious approach to estimates to reflect a likely prolonged recovery period.”

LULU closed Monday at $49.70 with shares trading down at 16.61 percent.