Shares of Lululemon Athletica Inc. rose the most since August after Goldman Sachs Group Inc. added the yoga-wear retailer to its “Conviction List” of highly recommended stocks, citing sales growth.
Lululemon, based in Vancouver, advanced 8.8 percent Wednesday to $51.15 at the close in New York for the biggest gain since Aug. 23. The shares increased 36 percent last year.
The retailer’s shares could rise to $64 in the next six- months, Michelle Tan, an analyst with Goldman Sachs, said in a report today. Stabilizing inventory and annual sales growth of more than 30 percent make the stock attractive, Tan wrote.
Lululemon “offers one of the most compelling stories in retail, with continuing brand momentum,” New York-based Tan said, adding that inventories improved in the fourth quarter.
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