An upgrade? In the retail sector?

Other than Wal-Mart Stores and the trade-down retailers, it is hard to find a store that analysts have faith in during this consumer slowdown.

(There are those of you who would go so far as to say consumer-led recession.)

Today, though, Credit Suisse surprised with an upgrade of fashionable sportswear company Lululemon Athletica to outperform, from neutral.

Lululemon stock has taken a beating since it made a rockstar IPO last year. The seaweed controversy, the allegations that the CEO inflated his resume and the general market hesitation to invest in a retailer which relies on discretionary spending have all added up to a lot of pressure on the share price.

But Credit Suisse is looking beyond those headline risks -- and upgraded the company based on valuation and sales momentum. The financial firm also reported that recent pressures from share sales by private equity holders have created a near-term imbalance in the stock. Where's it headed? CS's price target is $42.00.

I'll be interested to see how store traffic is at the new Lululemon stores that will be opening later this year in New York City, on the Upper East Side and Union Square West.

Questions? Comments? retaildetail@cnbc.com