Credit Suisse Initiating Coverage On lululemon athletica

Credit Suisse is out with a research report on lululemon athletica Inc LULU and is initiating coverage with a Neutral rating and a $57 price target on shares. In a note to clients, Credit Suisse writes, "We Are Initiating Coverage of lululemon with a Neutral Rating and a $57 Target Price. We see potential for lululemon to generate 25%-plus annual EPS growth over the next five years even with slowing of comps, suggesting that lofty P/E multiples north of 35 are likely sustainable and a stock price above $60 is possible. That said, with shares currently trading at 37.5x 2012E EPS, we see limited room for upside over the next 12 months." Shares of LULU closed at $56.65 yesterday.