UPDATE: ISI Raises PT on Lululemon to $65

ISI is out with its report today on Lululemon (NASDAQ: LULU), raising its PT from $55 to $65.

In its report, ISI writes, "Lululemon is one of the most exciting consumer growth stocks, and it remains a top pick given its tremendously profitable and long-tailed growth opportunities. Though the stock's super-high valuation (39x) is understandably difficult to swallow for many, we think investors will be increasingly willing to pay up for this rare story of a consumer brand that is literally creating an exciting, highly profitable new category."

ISI maintains Buy on LULU.

At the time of posting, shares of LULU were trading at $55.50, up 2.57% from Tuesday's close.