Lululemon Athletica Inc.'s stock rose more than 5 percent on Wednesday after Goldman Sachs added the Canadian fitness-wear company to its list of top stock picks, citing its sales growth and appealing stock price.
Lululemon has been one of the hottest chains in retailing thanks in part to the popularity of its high-priced yoga pants and tank tops.
Analyst Michelle Tan said in a client note that Lululemon's annual revenue rose more than 30 percent and still has room to go higher as it "fulfills a need in women's activewear apparel that parallels the need that brands like Nike and Under Armour cater to on the men's side."
Tan said that investors had previously complained about Lululemon's lofty stock price _ which closed above $57 in early November _ but that the shares now provide a compelling entry point after a recent pullback.
Shares of Lululemon gained $2.54, or 5.4 percent, to $49.57, in midday trading. Over the last year, the stock has traded between $32.65 and $64.49.