What happened

Shares of upscale yogawear retailer lululemon athletica (LULU -0.26%) were rising on Friday, after a Citigroup analyst upgraded the stock and said that Lululemon is likely to do well once the coronavirus pandemic fades.

As of noon EDT, Lululemon's shares were up about 11.2% from Thursday's closing price.

So what

In a note on Friday morning, Citigroup analyst Paul Lejuez upgraded Lululemon to buy, from neutral, with a price target of $190 per share. Lejuez called Lululemon a "stand out" among battered retail stocks, with a "rock solid" balance sheet and a compelling long-term growth story that remains intact. 

Lejuez wrote that he sees a strong rebound for the company once stores begin to reopen as the COVID-19 outbreak fades.

A display of yoga clothing inside a Lululemon store.

Image source: Lululemon Athletica.

Lululemon said on Sunday that it is closing all of its stores in North America through at least March 27, in response to "social distancing" measures recommended by health authorities to slow the spread of the COVID-19 virus. 

CEO Calvin McDonald said that all employees will continue to be paid for the hours they were scheduled to work.

Now what

Lululemon investors won't have to wait long for a detailed update on business conditions. The company is scheduled to report its fourth-quarter and fiscal 2019 results on Thursday, March 26. It has promised an update at that time.