Bank of America/Merrill Lynch analyst Rafe Jadrosich upgraded Lululemon Athletica Inc (LULU) - Get Lululemon Athletica Inc (LULU) Report stock to "buy" from "neutral" Monday, citing an increasingly optimistic outlook for the athletic clothing retailer's comp sales moving into the back half of 2017.

Jadrosich said same store sales could rebound more than 5% in the fiscal second quarter ending next month with multiple initiatives to sustain that momentum moving into 2018. High ecommerce penetration, pricing power and broad international opportunity position Lululemon well.

Jadrosich's new price target for Lululemon is $70, up about 43% from his previous target of $49. The analyst also raised his earnings estimate for the retailer to $2.40 from $2.29 for 2017, to $2.78 from $2.59 for 2018 and to $3 form $2.78 for 2019.

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Lululemon stock jumped 2.3% in late-afternoon trading Monday to $59.45. Shares have fallen over 8% since the start of the year.

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