For traders looking for a good reason to buy Lululemon Athletica inc. LULU 1.34%, Citi analyst Paul Lejuez just came up with 10. In a new note, Lejuez upgraded Lululemon stock from Neutral to Buy and gave a list of 10 reasons the stock is headed higher.

Lejuez was impressed by Lululemon’s Q2 earnings report and said investors are too concerned about potential threats from Amazon.com, Inc. AMZN 0.33% and other competitors.

Here’s a rundown of Lejuez’s 10 reasons to own Lululemon (see Lejuez’s track record here):

1. The past two quarters have demonstrated Lululemon’s ability to adapt.
2. Positive inflection in the tops segment in Q2 demonstrates Lululemon isn’t all about bottoms.
3. Bras provide a compelling growth opportunity.
4. There is strong momentum in the men’s business.
5. The company’s clearance strategy gives it a competitive advantage.
6. The company is facing easy outerwear comps in Q4.
7. Forex has transitioned to a near-term tailwind.
8. Lululemon’s strong cash position provides opportunity for buybacks.
9. The company is off to a string start to its China expansion.
10. The market is skeptical of the company’s $4 billion sales target.

These 10 reasons, coupled with a recent meeting with Lululemon management, have convinced Citi that now is the time to buy the stock.

“We believe…

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