Shares of Lululemon Athletica Inc. extended recent sharp gains in premarket trade Tuesday, after the yoga-gear seller was upgraded at Susquehanna Financial in the wake of better-than-expected fiscal second-quarter results. Analyst Sam Poser raised his rating to positive, after cutting it to neutral a little over five months ago. He raised his stock price target to $71, which is 15% above Friday’s closing price, from $64. Poser said Lululemon finally appears to have all aspects of its product, engagement and process (P-E-P) initiative working together to drive results, as the company’s densification store strategy is resonating. “A long awaited confluence of consumer engagement and efficient execution is now underway,” Poser wrote in a note to clients. “Improved product mix, inventory flow to stores is finally supporting consumer engagment.” The stock, which tacked on 0.4% in premarket trade, had run up 7.2% on Friday after the company reported results. The shares have shot up 17% over the past three months, while the SPDR S&P Retail ETF has lost 3.9% and the S&P 500 has gained 1.7%.
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