Cowen analyst John Kernan raised the price target on Lululemon Athletica Inc. (NASDAQ: LULU) to $335.00 (from $311.00) while maintaining an Outperform rating after the company agreed to acquire MIRRO for $500 million.

The analyst commented, "MIRROR is on track to generate in excess of $100MM in FY20 sales. The transaction will be slightly accretive to FY21 LULU EPS. We see a massive TAM, significant revenue synergies and lower customer acquisition costs for the MIRROR platform producing high growth and returns. We model a multi-year path to $50B+ Market Cap, $10+ in EPS and $1B in annual FCF for LULU."