• Jefferies maintains a "Hold" rating for Lululemon Athletica (NASDAQ:LULU) and raises the price target from $170 to $200.
• Elliott Management acquires a $1 billion stake in Lululemon, becoming a major shareholder and advocating for CEO changes.
• Lululemon's stock price sees a nearly 8% increase in premarket trading, with current price fluctuations indicating market volatility.

Lululemon Athletica (NASDAQ:LULU) is a well-known athletic apparel company that specializes in high-quality athleisure wear. The company has carved out a niche in the market with its stylish and functional clothing, appealing to both fitness enthusiasts and casual wearers. Lululemon faces competition from other major brands like Nike and Under Armour, but it continues to maintain a strong presence in the industry.

On December 18, 2025, Jefferies maintained its "Hold" rating for Lululemon, with the stock priced at $207.87. Jefferies also raised the price target from $170 to $200, indicating a more optimistic outlook for the company's future performance. This adjustment reflects a growing confidence in Lululemon's potential, despite the challenges it faces.

Lululemon's shares saw a notable increase of nearly 8% in premarket trading, driven by news that Elliott Management acquired a $1 billion stake in the company. This significant investment positions Elliott Management as a major shareholder, signaling potential changes within Lululemon. The hedge fund is reportedly advocating for a shake-up in the CEO position, aiming to rejuvenate the brand.

The stock's current price of $207.87 represents a 0.55% increase, with fluctuations between $201.01 and $209.45 during the trading day. Over the past year, Lululemon's stock has experienced highs of $423.32 and lows of $159.25, highlighting its volatility. The company's market capitalization is approximately $23.32 billion, with a trading volume of 5,024,080 shares on the NASDAQ exchange.

Elliott Management's involvement comes at a time when Lululemon is undergoing leadership changes, as the current CEO is set to step down in January. The hedge fund is collaborating with Jane Nielsen, a former Ralph Lauren executive, who is being considered for the CEO role. This strategic move aims to address the challenges Lululemon faces and strengthen its position in the competitive athleisure market.