As previously reported, BofA/Merrill double upgraded lululemon (LULU) to Buy from Underperform and increased its price target to $70 from $49. Analyst Rafe Jadrosich expects a rebound of same-store-sales to 5% in Q2 driven by multiple initiatives that will sustain momentum into 2018, resulting in earnings upside and multiple expansion. Jadrosich sees sustained comp momentum from ecommerce investments in visual merchandising, navigation and assortment, new product launches including Nulux and Enlite, momentum in Men's, merchandising improvements, and its first global advertising campaign. The analyst thinks Nike (NKE) and Under Armour (UAA) apparel weakness and missteps creates an opportunity for lululemon to gain share and expects margin expansion to continue in 2018.