The firm also raised the price target to $64 from $54.
"With bad news largely priced into the stock, we believe the shares are poised for a turnaround in sentiment," Wedbush said.
"We previously anticipated becoming more constructive on a reset of earnings expectations to a drastically lowered bar and we found several positive takeaways from recent earnings commentary to support our pivot in outlook," the firm added.
Separately, TheStreet Ratings team rates LULULEMON ATHLETICA INC as a Hold with a ratings score of C+. TheStreet Ratings Team has this to say about their recommendation:
"We rate LULULEMON ATHLETICA INC (LULU) a HOLD. The primary factors that have impacted our rating are mixed some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures and impressive record of earnings per share growth. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself and weak operating cash flow."
Highlights from the analysis by TheStreet Ratings Team goes as follows: