Morgan Stanley stated Thursday that Lululemon, despite the uncertain macro environment for apparel retailers across the globe, is more well-positioned than its competitors to weather the storm. Kimberly Greenberger, an analyst, upgraded the stock from overweight to equal weight. She explained in a note that the risks have been priced into Lululemon’s athleisure brand. According to her, the stock’s historical value is being traded at a discounted price. “We have long been structurally bullish on the business, & had been looking for valuation pullbacks as potential opportunities to become more constructive,” Greenberger said. “Current levels offer an attractive entry point, so we move off the sidelines & recommend long-term oriented investors take another look at this quality asset on sale.” The best thing about the stock is the 33.4% drop in shares over the past year. However, its stance toward high-end consumers helps to cushion it against inflation which is eating into the pockets of many. Greenberger pointed out that this trend helps the stock be more resilient in today’s macroenvironment and increases its pricing power. Lululemon shares have fallen more than 46% since November 2021 when they reached an all-time high and now trade at a 26.5% loss. As consumers searched for comfort apparel online, Lululemon stock was among those that benefited from the pandemic. Greenberger stated that casual clothing will continue to grow. Greenberger lowered her target price on Lululemon from $339 to $303 per shares in order to be certain. This new price target remains 16.2% higher than Wednesday’s closing. — CNBC’s Michael Bloom contributed reporting