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Lululemon initiated with a Buy at Needham

Needham analyst Anna Andreeva initiated coverage of Lululemon Athletica with a Buy rating and $470 price target. The analyst expects double-digit sales growth, saying the company’s accelerating technical innovation will drive demand across both core franchises and newer play verticals like tennis and golf). The firm also sees profitability upside from Lululemon, aided by China, the company’s second most profitable region, and scaling to corporate margins.

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