LVLU - Lulu's Fashion Lounge falls after BofA pulls its bull rating

Bank of America downgraded Lulu's Fashion Lounge (NASDAQ:LVLU) to a Neutral rating from Buy on its view that the current valuation is reflective of the near-term growth potential. The firm continues to view the company as a highly profitable and differentiated digital retailer, but expects macroeconomic weakening to slow the growth pace in the near term. Risks identified for the second half of the year include a consumer demand slowdown combined with higher promotions across the industry as many retailers became overstocked. "While its growth algorithm warrants a premium to peers, current levels adequately reflect this, in our view," updated analyst Lorraine Hutchinson. BofA set a price objective on LVLU of $21, which works out to 13X the F23 EV/EBITDA to reflect a slight premium to peer RVLV's current multiple given LVLU’s proven growth and strong execution. Shares of Lulu's FAshion Lounge Holdings (LVLU) fell 3.52% in premarket trading on

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Lulu's Fashion Lounge falls after BofA pulls its bull rating