Vetr Crowd Downgrades Lululemon: What To Know

• Shares of Lululemon Athletica inc. LULU were down almost 11 percent on Wednesday.
• The stock has tumbled 27 percent in the past three months.
• On Wednesday, the Vetr crowd downgraded Lululemon to three stars.

Generally speaking, the Vetr crowd is becoming increasingly bearish on Lululemon. The crowd downgraded the stock from 4.5 stars to three stars on Wednesday, even though 86 percent of the ratings are still bullish. The site’s formula considers several factors on top of Buy, Hold or Sell ratings to award stars.

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The three-star rating is accompanied by a $53.00 crowd price target, which implies an upside potential of 9 percent from current valuations.

Wall Street analysts are also becoming less optimistic on the retailer. A few days ago, FBR analyst Susan Anderson downgraded shares of Lululemon to Underperform, trimming her price target from $55 to $42.

While the analyst believes the company has a robust women's customer base that it has been consistently gaining traction in the men’s segment, and that its kid's products have potential, "the elevated inventories, supply chain issues, mix shift, and fixed-cost de-leverage will likely weigh more on GM than expected."

On the other hand, analysts at Wedbush and Credit Suisse continue to like the stock, and very recently issued an Overweight and an Outperform rating, respectively.

Disclosure: Javier Hasse holds no positions in any of the securities mentioned above.