Shares of Lululemon Athletica Inc. ran up 6.1% in active midday trading toward a record close, after the yoga-based apparel seller reported a fiscal second-quarter profit, revenue and same-store sales that beat expectations and provided an upbeat outlook. After the report, no less than 16 of 31 Wall Street analysts surveyed by FactSet have raised their stock price targets, to boost the average target to $209.04 from $196.35 at the end of August. Analyst Rafe Jadrosich at BofA Merrill Lynch lifted his target to $230, which is 15% above current levels, from $200, citing "impressive" traffic that could lead to further upside to same-store sales expectations, and potential for additional margin opportunities, continued strong international growth and product expansion in the men's category. Susquehanna's Sam Poser increased his target to $222 from $210, saying "exceptional" results demonstrate that Lululemon is the "premiere retailer" in his, and likely any coverage universe, as it has demonstrated "best-in-class execution and customer engagement (including new loyalty program) and innovative product offerings." The stock has soared 64% year to date, while the SPDR S&P Retail ETF has edged up 0.8% and the S&P 500 has gained 18.9%.
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