UPDATE: Credit Suisse Reiterates Outperform Rating, Raises PT on Lululemon Athletica

In a report published Friday, Credit Suisse Group reiterated its Outperform rating on Lululemon Athletica LULU, and raised its price target from $84.00 to $86.00. Credit Suisse noted, “Strong 3Q results (18% comps, $316.5M, $0.39 vs. Street's 14%, $305.1M, $0.37) indicates core demand remains healthy. Early 4Q execution issues look temporary and resolved, suggesting guidance for high-single-digit comps in 4Q will prove conservative. We continue to expect LULU to be able to drive double-digit comps sustainably (largely on maturation of newer stores) and drive OM expansion with leverage of aggressive front-end loaded international, eCommerce, and IT investments. As a result, we reiterate our Outperform rating, and raise our TP to $86 from $84.” Lululemon Athletica closed on Thursday at $73.55.