D.A. Davidson & Co. increased price targets for half the 14 stocks in its Active Lifestyle Index citing strong execution and a resurgence in consumer spending.

“Solid execution coupled with a continued gradual recovery in consumer spending within the Active Lifestyle industry has led to strong appreciation and rising valuations,” reads the investment bank’s Dec. 28  Active Lifestyle Monthly Commentary. “While cost pressures will pressure margins in 2011, earnings growth should still be quite respectable, we believe, and help to sustain valuation levels. Accordingly, we are adjusting several price targets upward to better reflect the most recent fundamentals as well as the upward move in P/E multiples.”

Specifically, DADCO raised price targets on Dick’s Sporting Goods, Hibbett Sports, Big 5 Sporting Goods, Columbia Sportswear, LaCrosse Footwear, Nautilus and Under Armour.

“Real monthly retail sales suggest the consumer continues to spend despite a slightly higher unemployment rate, “ reads the report.

As of Nov. 30, DADCO expected the average price-to-earnings ratio (based on estimated 2010 earnings) at 16.5 for the five retailers in its index and 25.2 for the nine manufacturers in the index. Those ratios will fall to 14.7 and 19.0 in 2011. Enterprise value-to-EBITDA ratios for retailers will fall from 7.7 in 2010 to 7.0 in 2011 and from  11.7 to 9.6 for manufacturers. Enterprise value-to-sales ratios for retailers will remain flat at 0.8% in 2011, but decline from 1.2 to 1.1 for manufacturers next year.