Lululemon Athletica Inc. shares gained 6.5 percent after Wells Fargo & Co. upgraded the stock, predicting that improvements the company has made to its supply chain should lower costs, reduce discounts and boost profit margins.
Ike Boruchow, a Wells Fargo analyst in New York, raised his rating on Lululemon to outperform, the equivalent of a buy, from a neutral recommendation. The Vancouver-based company made enhancements to its supply chain last year that could help boost margins 1.2 percent in the coming year, he said.
