Credit Suisse says Lululemon shares will get a boost from ‘strong product momentum’

An employee restocks clothes on display at the Lululemon Athletica sports apparel store on Regent Street in London.
Simon Dawson | Bloomberg | Getty Images

Lululemon shares will rise because of its successful new product lineup, according to Credit Suisse.

The firm reiterated its outperform rating for Lululemon shares, predicting the retailer will report sales above expectations in its second quarter.

Strong product momentum and digital improvements should boost same store sales, analyst Michael Binetti said in a note to clients entitled "Expect an Enlite-ning 2Q; Raising Target Price Amid Best-in-Class Momentum" Tuesday. He also said Lululemon's guidance for this year is "extremely conservative on both the top- & bottom-line."

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