Shares of lululemon athletica  (LULU - Get Report) are a relative bright spot in a downbeat session that is kicking off the new year, as the yoga wear maker benefits from two upgrades of its stock.

UPGRADES: Jefferies analyst Randal Konik upgraded lululemon to Buy from Hold, saying consensus expectations have been reset and are now likely beatable. The analyst believes the retailer has a "significant margin opportunity" that is not yet reflected in consensus estimates. He also raised his price target for the shares to $70. Meanwhile, Wells Fargo analyst Ike Boruchow upgraded lululemon to Outperform from Market Perform, as he believes "meaningful improvements" to the retailer's supply chain should bring "several meaningful benefits" in 2016. The analyst has increasing confidence in management's stated margin goals and believes key negative catalysts are now behind the company. Boruchow also raised his price target range for lululemon to $64-$66 from $50-$52.

ALSO BULLISH ON TIFFANY: In the same research note where he upgraded lululemon, Konik called Tiffany & Co.  (TIF - Get Report) his best new idea for 2016 in the Retailing/Specialty Stores space. Lower commodity costs and product mix shifts give the company a "significant margin expansion opportunity," Konik told investors about the jewelry shop operator. The analyst, who has a Buy rating on Tiffany with a $100 price target, also downgraded to shares of Chico's  (CHS - Get Report) and Fossil  (FOSL - Get Report) this morning to Hold from Buy.

PRICE ACTION: In early morning trading, lululemon shares are bucking the broader downtrend, rising 5.1% to $55.15, while Tiffany slid nearly 3% to $74.03.

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