NEW YORK (TheStreet) -- Shares of Lululemon Athletica (LULU) - Get Report are slipping, down 3% to $62.90 in pre-market trading Friday, after analysts at Goldman Sachs downgraded the yoga apparel retailer to "sell" from "neutral" in a note this morning.

The firm maintained its $52 price target on shares of Lululemon, but cited three factors limiting growth.

Goldman analysts see heightened competition in the athletic fashion brand space, stalling business in Canada, as well as Canadian dollar devaluation.

The firm said valuation reflects unrealistic growth assumptions.

Goldman said, "We do not believe the brand or business model support the magnitude of ongoing sales and operating margin improvement currently baked into valuation."

Analysts added that a "sustained acceleration in core North American comps over a multi-quarter period" would make them more positive, along with "better visibility on a return to higher gross and operating margins."

Canada-based Lululemon Athletica offers a range of yoga-inspired performance apparel and accessories for women, men and female youth such as fitness pants, shorts, tops and jackets, which are designed for healthy lifestyle activities.

Insight from TheStreet's Research Team:

Luluemon Athletica is a core holding of Jim Cramer's Action Alerts PLUS Charitable Trust Portfolio. During the most recent weekly roundup, this is what Jim Cramer, Portfolio Manager & Jack Mohr, Director of Research - Action Alerts PLUS had to say about the stock:

The stock's seemingly nonstop rally finally took a breather this week, though shares are still nearly 50% above our cost basis. There have been a few analysts out in recent weeks supporting the shares, including an upgrade at JPM, estimate increases from Oppenheimer and several positive notes/commentary about the recent trends, which have shown improvement. We remain bullish on this name, and would be incremental buyers on any pullback. The next significant catalyst will likely be Lululemon's earnings report in early- to mid-March. This will be a key moment for the stock -- as it represents the first reporting period for the company's newest products. Our target is $80.

- Jim Cramer and Jack Mohr, 'Weekly Roundup' originally published 2/27/2015 on ActionAlertsPLUS.com.

Want more information like this from Jim Cramer and Jack Mohr BEFORE your stock moves? Learn more about ActionAlertsPLUS.com now.

Separately, TheStreet Ratings team rates LULULEMON ATHLETICA INC as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:

"We rate LULULEMON ATHLETICA INC (LULU) a BUY. This is driven by several positive factors, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its solid stock price performance, revenue growth, largely solid financial position with reasonable debt levels by most measures, good cash flow from operations and expanding profit margins. We feel these strengths outweigh the fact that the company has had sub par growth in net income." You can view the full analysis from the report here: LULU Ratings Report