12:43 PM EDT, 03/18/2024 (MT Newswires) -- Lululemon Athletica ( LULU ) faces a mixed outlook among investors amid an expected "soft" Q1 US outlook countered by "robust international momentum," UBS Securities said Monday in a report.

"China's trends looks robust, and soft US checks over the last three to four quarters have not resulted in weak earnings or guidance," UBS said. "We see a very slightly negative upside/downside skew."

UBS said its data shows China momentum continuing, while industry web traffic indicates a deceleration for Lululemon.

"Whatever plays out, we, we sense a large group of investors will be surprised," UBS said.

The investment firm kept its neutral rating on Lululemon and maintained the price target at $525.

Results for Q4 and the full year are expected Thursday.

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