Jim Cramer -- Lululemon Remains One of My Favorites

Jim Cramer remains bullish on the yoga apparel company and sees shares going higher.
By Bret Kenwell ,

"One of my favorite stocks here is Lululemon (LULU) - Get Report ," TheStreet's Jim Cramer, co-manager of the Action Alerts PLUS portfolio, said on CNBC's "Mad Dash" segment Thursday.

The company has been plagued by supply chain mishaps and a lackluster merchandising strategy. However, those issues are being resolved, Cramer stated. He noted analysts at Wells Fargo assigned a price target range of $84 to $86 on the stock to go along with its outperform rating.

Some investors are tepid with apparel names such as Nike (NKE) - Get Report , Under Armour (UA) - Get Report and VF Corp. (VFC) - Get Report . However, "This is the star," Cramer said of Lululemon. "They have what people want." 

He explained that he is bullish on the stock on an earnings basis because the company's improved merchandising operations should put the right products in front of consumers.

"Lululemon makes sense to me," Cramer said. "It's going to go higher. It could still fly from here."

At the time of publication, Cramer's Action Alerts PLUS had no position in companies mentioned.

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