The company reported weaker-than-expected revenue but stronger-than-expected earnings per share for the quarter ended May 3, as it coped with the coronavirus pandemic.
"Lululemon has managed through the crisis better than every company in our coverage universe (with Nike (NKE) - Get Report perhaps the lone exception)," Susquehanna Financial Group analysts, led by Sam Poser, wrote in a report.
"Lululemon has cemented its position as the best publicly traded company in the specialty retailer sector, in our view," the analyst said.
The analysts were impressed with Lululemon’s ability to “develop guest relations and drive sales with its digital platforms through the evolving productivity of its CRM [customer relationship management] capabilities in the face of store closures."
They raised their share-price target to $360 from $240 and maintained a positive rating.
"Lululemon remains one of few companies out there that will emerge from the Covid-19 crisis stronger than it was when the crisis began," the analysts said.
Meanwhile, Citigroup analysts lifted their price target to $340 from $230 and maintained their buy rating. Argus boosted its target to $360 from $270, also keeping its buy rating.
Like the others, Argus analysts John Staszak believes Lululemon's outlook is among the strongest in the apparel sector.
Lululemon stood at $290 in premarket trading, down 2.15%. The stock has soared 68% over the past three months, compared to a 12% gain for the S&P 500.