UPDATE: Stifel Nicolaus Upgrades Lululemon to Buy, Maintains $64 PT

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Stifel Nicolaus upgrades Lululemon Athletica Inc. LULU from Hold to Buy and reiterates its $64 PT, as the company is seen as well positioned to capitalize on global health and wellness concerns as well as tap into $40bn active apparel global market. Among others, Stifen Nicolaus notes, “3 years plus of retail revenue growth percentages in the mid twenties or better (low twenties units, high single digit comps, 70% new store productivity) with resulting leverage of occupancy, corporate, and miscellaneous SG&A expenses. ...Outgrowth from e-commerce to bring mid-single-digit percentage point contribution to revenue growth and $0.35 incremental to earnings power from 2011 to 2014 (from 10% of revenue to 15% with 1000bps EBIT margin expansion).” LULU closed at $51.69 on Wednesday.
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