NEW YORK (TheStreet) -- Shares of Lululemon Athletica (LULU) are up 2.54% to $46.07 after Wells Fargo upgraded the Vancouver-based athletic apparel retailer to "outperform" from "market perform" and raised its valuation range to $50 to $54.
"LULU is one of the most attractive growth stories in retail, in our view, helped by the tailwind in athletic apparel. We believe LULU is one of the nicer houses in a great neighborhood, which should help the company drive strong top and bottom-line growth over the comping years," analysts said.
"With much of the work on the [LULU] supply chain in process or complete and with merchandise margins seemingly near an inflection point, we believe the underlying growth story will come into greater focus ... [and] importantly, lower oil prices may become a tailwind in 2015 as much of LULU's product is oil-based. We are raising our 2015E from $1.88 to $2.06," analysts noted.
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 a few notable strengths, 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 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."