Jefferies analyst, Randall Konik, reiterated his Hold rating on shares of lululemon athletica (NASDAQ: LULU) but raised the price target to $64 noting that the quarter was good but there are risks ahead.

LULU posted a solid 3Q, with an EPS beat driven by better comps and gross margin. This was partially offset by greater expense deleveraging. Despite mixed reads starting in 4Q, the company expects to maintain a MSD comp trend, coupled with GM expansion.

The reason for the hold is over the horizon. Looking beyond F'17, the analyst sees risk to the top-line and gross margin as the athleisure trend plateaus and pricing power fades.

The new PT of $64 is up from $61 on an average of 25x FY'18E EPS & 14x EV/EBITDA, in line with LULU's historical average & high-growth peers.

For an analyst ratings summary and ratings history on Lululemon Athletica Inc. click here. For more ratings news on Lululemon Athletica Inc. click here.

Shares of Lululemon Athletica Inc. closed at $59.84 yesterday.