UPDATE: JP Morgan Initiates Coverage on Lululemon on Low- to Mid- Teens Footage Growth

In a report published Wednesday, J.P. Morgan analyst Brian Tunick initiated an Overweight rating of Lululemon Athletica (NASDAQ: LULU) and initiated the price target to $84.00.

In the report, J.P. Morgan wrote, "We are initiating coverage of LULU with an OW rating and December 2014 price target of $84. After a 2013 wrought with execution issues, we see multiple levers to reaccelerate top- and bottom-line growth in FY14 and beyond, driven by low- to midteens footage growth, HSD-LDD comp gains, double-digit online growth, and margin recovery over time. 2014 potential catalysts for lulu include: 1) lapping the easier comp and margin comparisons from the 2013 Luon recall; 2) appointment of a new CEO, who could be showcased at the brand's April Analyst Day; and 3) lulu's first European store opening in London in 2Q14. LULU's multiple—while not cheap— could be poised for expansion once a new CEO is appointed and investors refocus on the brand's top-line and margin recapture prospects in 2014 and beyond."

Lululemon closed on Tuesday at $66.95.