UPDATE: Oppenheimer Upgrades lululemon to Outperform, Raises Target to $63

Anna Andreeva, analyst at Oppenheimer, on Tuesday upgraded luluemon athletica inc. (NASDAQ: LULU) from Market Perform to Outperform and raised the price target from $53 to $63.

Andreeva highlighted her belief there will be levers which will help push profit and sales growth higher, "driven by double-digit square foot growth, double-digit growth online, and margin recovery over time." She noted US penetration of 55 percent and said international is "in early innings."

The Oppenheimer analyst sees some promise in a new management team at lululemon, suggesting there is potentially now a "transition story" at hand.

Shares are up 2.3 percent to $52.01 on the session as momentum from the previous two weeks continues. Shares have been trending up towards the massive downward earnings gap created in the middle of December.