Needham Bullish on Lululemon
Needham started coverage on Lululemon.

Lululemon (LULU) was initiated with a "buy" rating and a price target of $67 at Needham & Co. on Wednesday morning.

The firm saw Lululemon's biggest risk being comp deceleration following years of growth. However, the firm noted a slowdown in this trend beginning at the start of the year and sees expectations as reset.

"At the same time, LULU's long-term growth levers, including international expansion, men's, and tops, seem to have solid traction while ecommerce also appears to be back on track following a hiccup in 1Q17," the firm said in a note. "We also view Lulu's margin profile, already among the best in retail, as poised to improve further based on structural mix changes (new and old), and the moderation of SG&A spend."

More of What's Trending on TheStreet:

More from Stocks

U.S. Equities Hold on to Slim Gains

U.S. Equities Hold on to Slim Gains

Video: General Electric Shares Slump Amid Weakness in Power Division

Video: General Electric Shares Slump Amid Weakness in Power Division

Intuitive Surgical Gets New Price Targets After Earnings Beat

Intuitive Surgical Gets New Price Targets After Earnings Beat

Podcast: What TheStreet's Interns Learned From Jim Cramer and Action Alerts PLUS

Podcast: What TheStreet's Interns Learned From Jim Cramer and Action Alerts PLUS

General Electric CFO to TheStreet: In 'Wait and See' Mode When It Comes to Trade

General Electric CFO to TheStreet: In 'Wait and See' Mode When It Comes to Trade