JPMORGAN: Everyone Take A Deep Breath And Buy Lululemon

Flickr/lululemon

lululemon athletica, the yoga apparel retailer, has gotten a lot of bad press in recent months for selling pants that were more-or-less see-through.

The stock is down 12% year-to-date.

But this doesn't have JPMorgan retail analyst Brian Tunick avoiding the stock.

Rather, in a massive 46-page note Tunick initiates coverage on the stock with an Overweight rating and an $84 price target.

Here's his summary:

Everyone Take a Deep Breath: Growth Trajectory Intact; Initiate with OW Rating and $84 Target
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 mid- teens 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.

The stock closed at $66.95 on Tuesday. An $84 price represents a 25% return.