Jefferies Lifts Price Target on lululemon (LULU) to $83 Following Conference Call

Jefferies Taposh Bari boosted his price target on shares of lululemon (NASDAQ: LULU) in an intraday research note following the conclusion of the company's fourth-quarter conference call. The analyst now sees shares of lululemon rising to $83 over the next year, up about 28 percent from a prior target of $65. Bari maintains a Hold rating on the stock, suggesting investors wait for a better entry point.

The Jefferies analyst noted several comments from the call:

• despite being the company's oldest market, same-store sales were up double-digits in Canada; and
  
• with Canada about three or four years ahead of the US market, the strength is a good indication for the brand within the States.

Bari believes an improved inventory position so far in 2012 sets lululemon up nicely to drive same-store sales above 2011's relatively "quiet" results.

The analyst's new price target is based on a PE of 50 times, near the high end of the company's valuation on a historical basis.

With lululemon shares up 2.3 percent to $75.79 at last check, Bari's new price target implies potential upside of about 10 percent.

For an analyst ratings summary and ratings history on lululemon click here. For more ratings news on lululemon click here.

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