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Monday's Top Upgrades (and Downgrades)

Rich Smith
December 3, 2012

This series, brought to you by Yahoo! Finance, looks at which upgrades and downgrades make sense, and which ones investors should act on. Today, our headlines include sweet news for lululemon athletica(NASDAQ: LULU), but downgrades for Bankrate (NYSE: RATE) and DreamWorks Animation (NASDAQ: DWA).

Good news first
Let's start off the week on a bright note -- say, neon yellow -- and begin with Lululemon, recipient of a new buy rating from the analysts at Canaccord Genuity this morning.

According to Canaccord, Lululemon's biggest problem historically has been that its products are so popular, it can't make them fast enough to sell all the yoga-wear that its customers want to buy. Admittedly, that's a nice problem to have, and according to Canaccord, it won't even be a "problem" much longer. The analyst thinks Lulu's expanding "supply capacity" will have the result that "traffic and conversion should improve" in 2013. Add in Lulu's increasing ability to deliver products into new markets abroad, and Canaccord predicts we'll see "a reacceleration of comp growth" in the new year, and as many as $0.18 per share in incremental profits growth.

Add this to the $1.82 a share that analysts ar