Lululemon Investors Can Breathe Slightly Easier

As shares went up slightly in morning trading Friday, it appears Lululemon Athletica Inc. (LULU) investors may have regained their center after being knocked off balance by a couple of analyst downgrades earlier in the week.

Shares dipped more than 8% Thursday, the same day UBS analyst Michelle Tan downgraded the yoga retailer from "neutral" to "sell" despite raising her price target from US$38 to US$42.

Ms. Tan told clients in a note that Lululemon would need to grow to more than 500 stores to support the current valuation of the stock.

On Monday, Goldman Sachs Group Inc. analyst Margaret Mager cut her rating on the shares from "buy" to "neutral," saying they're overvalued.

For the week, Lululemon shares were down about 11%.